Calpine Corporation has agreed to purchase a 1,050 MW combined-cycle power plant for US$625m, or approximately $595/kW, exclusive of adjustments relating to development rights and working capital, from MinnTex Power Holdings, a portfolio company owned by a private investment fund managed by Wayzata Investment Partners. The natural gas-fired plant is located in Guadalupe County, northeast of San Antonio, Texas. 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 approximately 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.
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