Calpine to Acquire Guadalupe Power Partners Generating Facility in Texas

  Calpine to Acquire Guadalupe Power Partners Generating Facility in Texas

Business Wire

HOUSTON -- December 2, 2013

Calpine Corporation (NYSE:CPN) has agreed to purchase a nominal 1,050
megawatt, combined-cycle power plant for $625 million, or approximately $595
per kilowatt, exclusive of adjustments relating to development rights and
working capital, from MinnTex Power Holdings, LLC, a portfolio company owned
by a private investment fund managed by Wayzata Investment Partners LLC. The
natural gas-fired plant is located in Guadalupe County, 30 miles northeast of
San Antonio, Texas.

“Guadalupe is an exceptional plant with an outstanding performance record that
meets Calpine’s high standards for operational excellence,” said Calpine’s
Chief Executive Officer Jack Fusco. “We strongly believe in the potential of
the Texas market as electric demand increases and reserve margins tighten.
Acquiring this modern, flexible and efficient plant in ERCOT’s south zone at a
discount to replacement cost furthers our strategic objectives in this key
market. The Guadalupe acquisition exemplifies our commitment to making
disciplined capital allocation decisions that will enhance shareholder value.”

Located on a 110-acre site, the Guadalupe plant includes two 525 megawatt
generation blocks, each consisting of two GE 7FA combustion turbines, two heat
recovery steam generators and one GE steam turbine. In addition, the purchase
includes rights to an advanced development opportunity for an approximately
400 megawatt quick-start, natural gas-fired peaker, if market conditions
warrant.

Calpine is targeting a transaction close in the first quarter of 2014 and
expects to fund the transaction with cash on hand. The transaction is subject
to customary closing conditions, antitrust review under the Hart-Scott-Rodino
Act, and approval by the Public Utility Commission of Texas. White & Case LLP
served as legal counsel to Calpine.

Vinson & Elkins, LLP served as legal counsel to Wayzata on the transaction,
and Tudor, Pickering, Holt & Co. served as Wayzata’s exclusive financial
advisor.

About Calpine

Calpine Corporation generates more electricity than any other independent
power producer in America, with a fleet of 93 power plants in operation or
under construction, representing more than 28,000 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.

About Wayzata

Based in Wayzata, Minnesota with branch offices in Boston, Houston, London,
Singapore, and Mumbai, Wayzata Investment Partners LLC is an SEC registered
investment adviser to private investment funds with in excess of $7 billion in
assets under management.

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, 2012. 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.

Contact:

Calpine Corporation
Media Relations:
Brett Kerr, 713-830-8809
brett.kerr@calpine.com
or
Investor Relations:
Bryan Kimzey, 713-830-8775
bryan.kimzey@calpine.com
 
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