Talen Energy has completed the previously announced sale of its indirect, wholly-owned subsidiary Interstate Energy Company (IEC) to Adelphia Gateway, a subsidiary of New Jersey Resources Corp.
Upon closing of the transaction, Talen Energy received proceeds in the amount of $155 million, which was in addition to $10 million received upon announcement of the transaction in October 2017. The closing proceeds are expected to be used for recourse debt reduction.
“The sale of IEC marks the last in a series of planned sales of noncore assets which were announced shortly following Talen Energy’s take-private transaction in December 2016,” said Ralph Alexander, chairman and CEO of Talon Energy. “These sales allowed the company to monetize underutilized assets to generate incremental cash flow and drive greater efficiencies.”
The IEC pipeline consisted of an 84-mile pipeline between Marcus Hook and Martins Creek, Pa. As part of the agreement, Talen Energy subsi