calpine corp (CPN) Key Developments
Calpine Corp. Closes $1.6 Billion First Lien Term Loan
May 28 15
Calpine Corp. announced that it has closed on a $1.6 billion first lien term loan. The Term Loan, which amortizes at a rate of 1% per year, bears interest at LIBOR plus 2.75% per annum (subject to a LIBOR floor of 0.75%) and matures in 2022. The company utilized the proceeds of the Term Loan to retire approximately $1.6 billion remaining on its 2018 first lien term loan which bore interest at a rate of LIBOR plus 3% per annum (subject to a LIBOR floor of 1%). As a result of this transaction, the company have reduced annual interest expense and extended debt maturity profile by four years. Morgan Stanley, Goldman Sachs, Mitsubishi, Barclays and RBC acted as lead arrangers on the transaction.
Calpine Corp. Approves Amendments to Bylaws
May 13 15
The shareholders of Calpine Corp. approved the amendment and restatement of the company's bylaws to implement majority voting in uncontested director elections, at the AGM held on May 13, 2015.
Calpine Corporation Names W.G. Griggs III Executive Vice President and Chief Commercial Officer, Effective June 1, 2015
May 12 15
Calpine Corporation has named W.G. “Trey” Griggs III its Executive Vice President and Chief Commercial Officer effective June 1, 2015. Previously Mr. Griggs was a Managing Director at Goldman Sachs & Co. At Calpine, Mr. Griggs will have responsibility for the trading, origination, development and commercial analytics groups and will report to Calpine’s Chief Executive Officer. For the past four years, Mr. Griggs led Goldman Sachs’ North American Energy Risk Management activities and the Houston Trading Office. Prior to that, he served in various roles with the Goldman Sachs commodities group in New York. The company also announced succession plans for Jim Deidiker, Senior Vice President and Chief Accounting Officer (CAO), who is planning to retire. Jeff Koshkin, currently Vice President and Controller, will succeed Mr. Deidiker on August 1, 2015. Mr. Deidiker has agreed to remain at the company in a consultative capacity until March 15, 2016.
Calpine and Guadalupe Valley Electric Cooperative Plan to Build 418 MW Peaker
May 4 15
Calpine and Guadalupe Valley Electric Cooperative, Inc. plan to build a 418 MW, natural gas-fired peaking plant in Texas when market conditions warrant. Calpine and the Guadalupe Valley Electric Cooperative will jointly own the new simple-cycle plant which Calpine will build adjacent to its Guadalupe Energy Center near San Antonio. While Exelon is pursuing plans to build two 1,000 MW gas plants in the Electric Reliability Council of Texas (ERCOT) by 2017, Calpine, NRG, Tenaska and other developers have taken a cautious stance toward adding generation as they wait for signs that wholesale prices will climb to a level to justify construction or for long periods of scarcity prices. Mild summer weather and completion of a few new power plants have served to mask potential supply risks in the state where power use rose by 2.5% in 2014, Calpine and other generators have said. Any unforeseen event could push the market into scarcity, sending wholesale prices as high as $9,000/MWh in summer.
Calpine Corporation Announces Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2015; Reaffirms Earnings Guidance for the Full Year of 2015
May 1 15
Calpine Corporation announced unaudited consolidated earnings results for the first quarter ended March 31, 2015. For the quarter, the company reported operating revenues of $1,646 million against $1,965 million a year ago. Income from operations was $166 million against $144 million a year ago. Loss before income taxes was $8 million against $32 million a year ago. Net loss was $7 million against $13 million a year ago. Net loss attributable to company was $10 million against $17 million a year ago. Net loss per common share attributable to company - basic and diluted was $0.03 against $0.04 a year ago. Net cash used in operating activities was $17 million against net cash provided by operating activities of $123 million a year ago. The decrease in cash provided by operating activities was primarily due to lower income from operations (adjusted for non-cash items) primarily as a result of lower Commodity Margin in East region. Purchases of property, plant and equipment was $162 million against $119 million a year ago. Total adjusted EBITDA was $338 million against $446 million a year ago. The year-over-year decrease in Adjusted EBITDA was primarily related to a $110 million decrease in Commodity Margin. Adjusted free cash flow was $25 million against $130 million a year ago. Adjusted Free Cash Flow decreased during the period primarily due to the decrease in Adjusted EBITDA. Adjusted free cash flow per share – diluted was $0.07 against $0.31 a year ago. Net loss, as adjusted was $62 million against net income, as adjusted of $56 million a year ago. The year-over-year decline was driven largely by lower Commodity Margin.
For 2015, the company reaffirming 2015 guidance, the company expects adjusted EBITDA of $1,900 million to $2,100 million. Adjusted free cash flow is expected to be $810 million to $1,010 million. Adjusted free cash flow per share – diluted to be in the range of $2.10 to $2.60. Growth capital expenditures (net of debt funding) expected to be $355 million.