Calpine Corporation — 27 GW natural gas + geothermal fleet, creating 55 GW combined company
Constellation acquires Calpine in cash-and-stock deal (50M shares + $4.5B cash). Creates nation's largest power producer at 55 GW. FERC required divestiture of ~3.5 GW in PJM. Assumed ~$12.7B net debt.
$26.60B
Deal Value
27,000MW
Capacity
Geothermal
Technology
Multi-state
Location
Deal Details
- Deal Type
- Corporate M&A
- Seller / Sponsor
- Energy Capital Partners, Access Industries, CPP Investments
- Buyer / Financier
- Constellation Energy
- Deal Value
- $26.6B (stock + cash)
- Stage
- Operating
- ISO/RTO
- Multiple
- Source
- Constellation Energy
Capital Structure
$26.6B
Total transaction value
Tranches
- Stock Consideration · Constellation Energy (50M shares at $237.98 20-day VWAP)
- $11.9B
- Cash · Constellation Energy (cash on hand + Calpine cash flow)
- $4.50B
- Assumed Net Debt · Calpine Corporation
- $12.7B
- Senior Notes · Constellation Energy (issued to fund acquisition / retire Calpine debt)
- $2.75B
Service Providers
Advisory & Legal
- Seller Counsel
- Latham & Watkins, White & Case
- Buyer Counsel
- Kirkland & Ellis
- Seller Financial Advisor
- Evercore, Morgan Stanley, Goldman Sachs, Barclays
- Buyer Financial Advisor
- Lazard, JP Morgan
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