Calpine buys 1,050 MW gas plant in Texas
Calpine Corp. completed the purchase of a natural gas-fired, combined-cycle power generation plant located in Guadalupe County, Texas
Calpine Corp. completed the purchase of a natural gas-fired, combined-cycle power generation plant located in Guadalupe County, 30 miles northeast of San Antonio, Texas, in the territory of the Electric Reliability Corporation of Texas (ERCOT).
Calpine purchased the gas plant, which has a nameplate power generation capacity of 1,050 MW, 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 about $595 per kW.
Guadalupe Energy Center is located on a 110-acre site and includes two 525-MW generation blocks, each consisting of two GE 7FA combustion natural gas turbines, two heat recovery steam generators and one General Electric (GE) steam turbine.
The Guadalupe acquisition was funded with a $425 million incremental Term Loan B at Calpine Construction Finance Co. 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 percent.