Calpine sees net cash deployed of about $900M by FY16-end
Calpine closed the previously announced acquisition of Noble Americas Energy Solutions. Calpine purchased Noble Solutions for $800M plus working capital. Through collateral optimization and synergies and the runoff of acquired legacy hedges, Calpine expects net cash deployed of approximately $900M by year-end 2016, declining to approximately $700M substantially within the first year. The acquisition was funded with a combination of cash on hand and a one-year, $550M term loan priced at LIBOR plus 175 basis points. The company intends to repay the term loan during 2017 with proceeds from announced asset sales and cash from operations, including that generated from the anticipated collateral synergies. Concurrent with the closing of the Noble Solutions acquisition, Calpine has upsized its corporate revolver to approximately $1.8B through June 2020.