Calpine Completes Purchase of Guadalupe Power Plant in Texas for $625 Million

  Calpine Completes Purchase of Guadalupe Power Plant in Texas for $625

Business Wire

HOUSTON -- February 27, 2014

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 to learn more about why Calpine is a generation ahead –

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 or Calpine’s website at 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.


Calpine Corporation
Media Relations:
Brett Kerr, 713-830-8809
Investor Relations:
Bryan Kimzey, 713-830-8775
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