July 17 (Reuters) - Talen Energy ( TLN ) has agreed to

acquire Caithness Energy's Moxie Freedom Energy Center in

Pennsylvania and Caithness and BlackRock's Guernsey Power

Station in Ohio in a deal worth $3.5 billion, the company said

on Thursday.

Shares of the company were up 10% in extended trade.

The gross value of the deal is expected to be about $3.8

billion.

The company expects the transaction to be immediately

accretive to free cash flow per share by over 40% in 2026.

The Moxie and Guernsey deals are both expected to close in

the fourth-quarter and the company will issue about $3.8 billion

in new debt to fund the acquisitions and refinance target debt,

using both secured and unsecured instruments.