Talen Energy Secured Debtholders Tap Houlihan for Debt Talks
(Bloomberg) -- A group of Talen Energy Corp. term loan holders have selected Houlihan Lokey Inc. to provide financial advice in the power company’s upcoming debt talks, according to people with knowledge of the situation.
The group has been getting legal advice from King & Spalding and recently sought pitches from financial advisers, Bloomberg previously reported. A representative for Houlihan declined to comment. Representatives for King & Spalding and Talen didn’t immediately respond to requests for comment.
Various creditor groups are forming as Talen reviews ways to tackle its roughly $4 billion debt load. Bloomberg reported Monday that lenders who provided the company with a credit line have begun working with Davis Polk & Wardwell, and a group of investors in the company’s secured debt and unsecured notes has been seeking to expand its reach.
The Riverstone Holdings-backed company’s debt cratered last month after management released a downbeat earnings outlook and failed to quell concerns around its debt-reduction strategy. Investors were particularly worried about the potential transfer of the company’s prized Susquehanna nuclear asset, Bloomberg previously reported.
Talen’s first-lien term loan due 2026 is quoted around 88.25 cents on the dollar, according to data compiled by Bloomberg.
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