Calpine Corporation (NYSE:CPN) today completed the acquisition of
Granite Ridge Energy Center, a natural gas-fired, combined-cycle power
plant located in Londonderry, New Hampshire, approximately 45 miles
northwest of Boston. Calpine purchased the plant, which has a nameplate
generating capacity of 745 megawatts, from Granite Ridge Holdings for
$500 million, or approximately $671 per kilowatt, subject to working
capital adjustments.
“The addition of Granite Ridge strategically enhances our footprint in
New England. Now with approximately 2,000 megawatts of modern gas-fired
capability in the region, Calpine is well positioned to provide clean,
flexible and reliable energy and capacity to the market,” said Calpine’s
President and Chief Executive Officer Thad Hill. “I am also pleased to
welcome the capable and dedicated employees at Granite Ridge to the
Calpine team.”
Granite Ridge is located in ISO-New England, where tightening market
conditions have resulted in capacity revenues that will improve
substantially over the next three years. The power plant, which
commenced commercial operation in 2003, features two Siemens 501G
combustion turbines, two heat recovery steam generators and one steam
turbine.
Consistent with our expectations, $325 million of the purchase price was
funded with proceeds from a $550 million first lien term loan secured by
Calpine in December 2015, with the remainder funded by cash on hand. The
first lien term loan is priced at LIBOR plus 3% per annum (subject to a
floor of 1%) and matures in 2023.
About Calpine
Calpine Corporation is America’s largest generator of electricity from
natural gas and geothermal resources. Our fleet of 84 power plants in
operation or under construction represents more than 27,000 megawatts of
generation capacity. Through wholesale power operations and our retail
business, Champion Energy, we serve 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. Please
visit www.calpine.com
to learn more about why Calpine is a generation ahead – today, or visit www.championenergyservices.com
for details on Champion’s award-winning retail electric services.
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, 2014.
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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