Calpine to use up to $550 million bridge loan to buy Noble subsidiary

By Angela McDaniels

Tacoma, Wash., Oct. 10 – Calpine Corp. plans to fund the acquisition of Noble Americas Energy Solutions, LLC with a combination of cash on hand and up to $550 million of bridge loan financing, according to a company news release.

Calpine plans to repay the bridge loan during 2017 with proceeds from asset sales and cash from operations.

The company expects to meet anticipated collateral needs with about $240 million of letters of credit and $20 million of surety bonds, leaving almost $1.2 billion of Calpine revolver capacity at closing.

Calpine agreed to purchase the company for $800 million plus an estimated $100 million of net working capital at closing.

Calpine will acquire the business from Noble Americas Gas & Power Corp., a subsidiary of Noble Group Ltd., and expects the acquisition to close by the end of 2016, subject to customary closing conditions, approval by Noble Group shareholders, approval from the Federal Energy Regulatory Commission and antitrust review under the Hart-Scott-Rodino Act.

Calpine generates electricity and is based in Houston. Noble Americas Energy Solutions supplies power to commercial and industrial retail customers and is based in San Diego.

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