Calpine Corporation (NYSE:CPN) has completed the acquisition of a natural gas-fired, combined-cycle power plant located in Guadalupe County, 30 miles northeast of San Antonio, Texas, in ERCOT’s south zone. Calpine purchased the plant, which has a nameplate generating capacity of 1,050 megawatts, from MinnTex Power Holdings, LLC (a portfolio company owned by a private investment fund managed by Wayzata Investment Partners LLC) for $625 million plus adjustments, or approximately $595 per kilowatt. “The addition of Guadalupe Energy Center to our fleet at a discount to replacement cost, and at a time when electric demand in ERCOT is increasing and the reserve margin is tightening, demonstrates our commitment to making disciplined capital allocation decisions to drive shareholder value,” said Calpine’s Chief Executive Officer Jack Fusco. “I am pleased to welcome our new employees at Guadalupe who have so ably demonstrated operational excellence in keeping with Calpine’s industry-leading standards.” The Guadalupe acquisition was funded with a $425 million incremental Term Loan B at Calpine Construction Finance Company, L.P. (CCFC) and cash on hand. The add-on to CCFC’s existing 8.5-year, first lien senior secured term loan priced at LIBOR plus 250 basis points and was offered to investors at an issue price of 98.75%. Guadalupe Energy Center is located on a 110-acre site and includes two 525 megawatt generation blocks, each consisting of two GE 7FA combustion turbines, two heat recovery steam generators and one GE steam turbine. About Calpine Calpine Corporation generates more electricity than any other independent power producer in America, with a fleet of 94 power plants in operation or under construction, representing more than 29,000 megawatts of generation capacity. Serving customers in 20 states and Canada, we specialize in developing, constructing, owning and operating natural gas-fired and renewable geothermal power plants that use advanced technologies to generate power in a low-carbon and environmentally responsible manner. Our clean, efficient, modern and flexible fleet is 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. We focus on competitive wholesale power markets and advocate for market-driven solutions that result in nondiscriminatory forward price signals for investors. 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, 2013. 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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