This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Calpine Buys Dual-Fuel Plant From Exelon for $530M

Stocks in this article: CPN EXC

NEW YORK ( The Deal) -- Houston-based Calpine (CPN - Get Report)  has acquired the Fore River Generating Station, based in North Weymouth, Mass., from Chicago-based Exelon (EXC - Get Report)  for $530 million, extending its New England presence.

The independent power producer will use cash on hand to fund the acquisition.

New England is considered as a solid competitive market by Calpine. "With the acquisition of Fore River, we will grow our presence in a region that features favorable fundamentals and a supportive, market-based regulatory philosophy," said Thad Hill, the company's president and CEO, in a statement.

Built in 2003, the Fore River Generating Station features two Mitsubishi 501G combustion turbines, two heat recovery steam generators and one Mitsubishi steam turbine. The plant's dual-fuel capability enables it to run on either natural gas or fuel oil, depending upon market conditions.

Calpine said it continues to redeploy its capital through accretive acquisitions and divestitures, organic growth, balance sheet management and return of capital to shareholders through its share repurchase program. It has 87 power plants (natural gas and geothermal) in operation or under construction, representing approximately 26,000 megawatts of generation capacity.

The company expects to close the deal in the fourth quarter and will require approvals from the Federal Energy Regulatory Commission, as well as Hart Scott Rodino clearance.

Calpine did not retain a financial adviser for the effort. White & Case LLP was the lead M&A counsel to Calpine and the deal team included Michael Shenberg, Ipek Candan Snyder, Jessie Baxter, Sunny Kim, James Hayden, Stephanie Gentile, Henrik Patel, Jason Rothschild and Tal Marnin. Pierce Atwood LLP and Shawe & Rosenthall LLP also served as legal advisers.

The Deal previously reported that Exelon had hired Citigroup Global Markets Inc. as its exclusive financial adviser for the sale. Citi sent out teasers on Fore River in May 2014 and conducted a typical two-phase auction process.

At Citi, Jack Paris, Michael Karafiol and Rebecca Kruger were the primary bankers on the deal. Eda Henries, Raheel Abbasi and Josh Katz were also on the deal team.

DLA Piper LLP served as Exelon's legal adviser on the deal.

Constellation Energy Group Inc., now part of Exelon, had acquired Fore River and the Mystic plant in Everett, Mass. for $1.1 billion back in January 2011. Constellation acquired the two facilities from US Power Generating Co. through a bankruptcy sale process in the U.S. Bankruptcy Court for the Southern District of New York.

Mystic, a 2,002 megawatt facility in Charlestown, Mass., was not part of the Citi-run sale process and Exelon has no plans to sell it at this time, The Deal previously reported.

Exelon is shopping a number of other power plants as part of an ongoing process to evaluate non-core assets. The plants on the block include Conemaugh and Keystone; Hillabee via JPMorgan; and Quail Run Generating.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,422.75 +35.54 0.20%
S&P 500 2,026.68 -2.87 -0.14%
NASDAQ 4,686.5640 +5.0670 0.11%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs