Talen Energy Corp. completed the purchase of the Freedom Generating Station in Pennsylvania and the Guernsey Power Station in Ohio on November 25, 2025, for a net price of $3.5 billion (gross $3.8 billion). The two combined‑cycle plants add 1,045 MW and 1,836 MW of modern, highly efficient natural‑gas capacity, bringing Talen’s total fleet to 2.9 GW and strengthening its presence in the PJM market.
The acquisition was financed with a $2.7 billion senior unsecured notes package, a $1.2 billion senior secured term loan, a $900 million revolving credit facility, and a $1.1 billion letter‑of‑credit facility. The debt structure gives Talen a robust balance sheet while providing the liquidity needed to support ongoing operations and future growth initiatives.
Strategically, the deal expands Talen’s footprint in the high‑growth PJM region, where demand from hyperscale data centers and other large commercial off‑takers is accelerating. The company’s “Talen flywheel” strategy—leveraging efficient assets to capture new demand—positions the new plants to deliver immediate, high‑margin earnings and free cash flow. Management expects the acquisition to be “immediately and highly accretive” to earnings, driven by the plants’ low operating costs and strong capacity utilization.
CEO Mac McFarland said the Freedom and Guernsey assets are “best‑in‑class” natural‑gas facilities that will enhance Talen’s ability to provide reliable, low‑carbon power to data centers. Chief Fossil Officer Dale Lebsack added that the company is prepared to integrate the plants smoothly and that the teams have a proven track record of safe, compliant, and efficient operations.
Regulatory clearance from the Federal Energy Regulatory Commission and the Department of Justice was obtained before closing, and the acquisition aligns with Talen’s focus on low‑carbon, high‑efficiency generation. The deal adds significant capacity in a market that is expected to grow as AI and digital infrastructure demand intensifies, while the debt package underscores Talen’s commitment to disciplined capital allocation.
The transaction represents a major expansion of Talen’s generation portfolio, a strategic bet on the data‑center power market, and a disciplined financing approach that balances growth with leverage. The acquisition is expected to strengthen Talen’s competitive position in the PJM market and support the company’s long‑term growth strategy.
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