Calpine Closes on Acquisition of Noble Americas Energy Solutions
December 01 2016 - 11:09AM
Business Wire
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 and services.”
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 June 2020.
About Calpine
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.
Forward-Looking Information
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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version on businesswire.com: http://www.businesswire.com/news/home/20161201005952/en/
Calpine CorporationMedia Relations:Brett Kerr,
713-830-8809brett.kerr@calpine.comorInvestor Relations:Bryan
Kimzey, 713-830-8775bryan.kimzey@calpine.com
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