Calpine Corporation (NYSE:CPN) today closed the previously announced
acquisition of Noble Americas Energy Solutions, LLC (“Noble Solutions”),
the nation’s largest independent supplier of power to commercial and
industrial retail customers.
Noble Solutions currently serves commercial and industrial customers in
18 states nationwide, including California, Texas, the Mid-Atlantic and
the Northeastern United States, where Calpine’s wholesale power
generation fleet is primarily concentrated. The organization will remain
headquartered in San Diego under the leadership of Jim Wood, who will
remain its President and report to Trey Griggs, Calpine’s Executive Vice
President and Chief Commercial Officer. Its name will be changed to
Calpine Energy Solutions, LLC, pending state-level regulatory approval.
“Noble Solutions has built an impressive retail platform serving
sophisticated commercial and industrial customers, and we are excited to
welcome their talented professionals into the Calpine family,” said
Griggs. “The Noble Solutions team’s delivery of customized product
offerings effectively manages customers’ complex energy needs. We look
forward to working together to build on their track record of success
and to further leverage Calpine’s complementary generation fleet to
create tailored solutions for customers.”
“Today, we are thrilled to join the Calpine team,” said Wood. “Our
customers will continue to receive the highest level of service that is
the standard at Noble Solutions. With Calpine, our retail platform is
now backed by a clean, modern and flexible generation fleet and a strong
balance sheet that will allow us to provide greater value-added products
Calpine purchased Noble Solutions for $800 million plus working capital.
Through collateral optimization and synergies and the runoff of acquired
legacy hedges, Calpine expects net cash deployed (including working
capital) of approximately $900 million by year-end 2016, declining to
approximately $700 million substantially within the first year.
The acquisition was funded with a combination of cash on hand and a
one-year, $550 million term loan priced at LIBOR plus 175 basis points.
The company intends to repay the term loan during 2017 with proceeds
from announced asset sales and cash from operations, including that
generated from the anticipated collateral synergies.
Concurrent with the closing of the Noble Solutions acquisition, Calpine
has upsized its corporate revolver to approximately $1.8 billion through
Calpine Corporation is America’s largest generator of electricity from
natural gas and geothermal resources with operations in competitive
power markets. Our fleet of 82 power plants in operation or under
construction represents nearly 27,000 megawatts of generation capacity.
Through wholesale power operations and our retail businesses Noble
Americas Energy Solutions (soon to be Calpine Energy Solutions) and Champion
Energy, we serve customers in 24 states, Canada and Mexico. Our
clean, efficient, modern and flexible fleet uses advanced technologies
to generate power in a low-carbon and environmentally responsible
manner. We are uniquely positioned to benefit from the secular trends
affecting our industry, including the abundant and affordable supply of
clean natural gas, stricter environmental regulation, aging power
generation infrastructure and the increasing need for dispatchable power
plants to successfully integrate intermittent renewables into the grid.
Please visit www.calpine.com
to learn more about why Calpine is a generation ahead – today.
In addition to historical information, this release contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Words such as “believe,” “intend,” “expect,”
“anticipate,” “plan,” “may,” “will,” “should,” “estimate,” “potential,”
“project” and similar expressions identify forward-looking statements.
Such statements include, among others, those concerning expected
financial performance and strategic and operational plans, as well as
assumptions, expectations, predictions, intentions or beliefs about
future events. You are cautioned that any such forward-looking
statements are not guarantees of future performance and that a number of
risks and uncertainties could cause actual results to differ materially
from those anticipated in the forward-looking statements. Please see the
risks identified in this release or in Calpine’s reports and
registration statements filed with the Securities and Exchange
Commission, including, without limitation, the risk factors identified
in its Annual Report on Form 10-K for the year ended Dec. 31, 2015 and
its Quarterly Report on Form 10-Q for the three months ended September
30, 2016. These filings are available by visiting the Securities and
Exchange Commission’s website at www.sec.gov
or Calpine’s website at www.calpine.com.
Given the risks and uncertainties surrounding forward-looking
statements, you should not place undue reliance on these statements.
Many of these factors are beyond our ability to control or predict. Our
forward-looking statements speak only as of the date of this release.
Actual results or developments may differ materially from the
expectations expressed or implied in the forward-looking statements,
and, other than as required by law, Calpine undertakes no obligation to
update any such statements, whether as a result of new information,
future events, or otherwise.
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Source: Calpine Corporation