David Rosen — Rubric Capital
Long Talen Energy (Private!)
Post-reorg equity that will start trading OTC at the end of the month. Will start trading on the NYSE or Nasdaq by EoY. Talen’s assets include Susquehanna (leading nuclear power plant), 10GW of non-nuclear energy production facilities, and some data center and crypto-related assets. Surprisingly, the company filed for bankruptcy during a period when electricity prices were rising. Talen had hedges that required the company to post collateral as prices rose, liquidity they did not have so they had to file for bankruptcy. So the capital structure was not the core issue. The shareholders (incl. Rubric) put in place a new management team. The current value for the equity is $2.5bn but the company’s SOTP value is $4.5-6.5bn ($4-5.3bn without the non-generation assets).