Calpine Corp. has agreed to purchase a nominal 1,050 MW, combined-cycle power plant for $625 million, or about $595 per kW, exclusive of adjustments relating to development rights and working capital, from MinnTex Power Holdings LLC, a portfolio company owned by a private investment fund managed by Wayzata Investment Partners LLC.
Located on a 110-acre site, the Guadalupe plant includes two 525 MW generation blocks, each consisting of two GE 7FA combustion turbines, two heat recovery steam generators and one GE steam turbine.
In addition, the purchase includes rights to an advanced development opportunity for an about 400 MW quick-start, natural gas-fired peaker, if market conditions warrant.
Calpine is targeting a transaction close in the first quarter of 2014 and expects to fund the transaction with cash on hand. The transaction is subject to customary closing conditions, antitrust review under the Hart-Scott-Rodino Act, and approval by the Public Utility Commission of Texas. White & Case LLP served as legal counsel to Calpine.
Vinson & Elkins, LLP served as legal counsel to Wayzata on the transaction, and Tudor, Pickering, Holt & Co. served as Wayzata’s exclusive financial advisor.