The sale is part of a requirement to divest certain assets in specific regions of the PJM Interconnection, which include eastern Pennsylvania, Maryland and New Jersey, to comply with a December 2014 Federal Energy Regulatory Commission order approving the transactions that formed Talen Energy.
Announced asset sales to date, including this announcement, total 1,395 MW. Talen Energy continues to review and evaluate options for the remaining identified mitigation assets.
Proceeds of the sale are not material, and the effects of divesting the Crane plant on net income, adjusted EBITDA, cash from operations and adjusted free cash flow on a full-year 2016 basis are not expected to be material.
The transaction is expected to close in the first quarter of 2016, following receipt of required regulatory approvals and other customary closing conditions.
Goldman Sachs served as financial advisor to Talen Energy. Kirkland & Ellis was Talen Energy’s transaction counsel.
Avenue Capital Group is an established global alternative investment firm with about $13.2 billion in assets under management, as of Sept. 30, 2015.