Capital Power completes acquisition of the La Paloma facility, anticipates closing the Harquahala facility acquisition mid-February and exchanges subscription receipts into common shares

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EDMONTON, Alberta, Feb. 09, 2024 (GLOBE NEWSWIRE) -- Capital Power Corporation (TSX: CPX) (“Capital Power” or the “Company”) is pleased to announce the closing today of the acquisition of 100% of the equity interests in CXA La Paloma, LLC (“La Paloma”), owner of the 1,062 MW La Paloma natural gas-fired generation facility in Kern County, California (the “La Paloma Acquisition”).

In addition, Federal Energy Regulatory Commission (“FERC”) approval for the acquisition by a 50/50 partnership between Capital Power Investments, LLC and an affiliate of a fund managed by BlackRock’s Diversified Infrastructure business (“BlackRock”) of 100% of the equity interests in New Harquahala Generation Company, LLC (“Harquahala”) has been received and the closing of that acquisition is expected shortly, subject to normal closing conditions (the “Harquahala Acquisition” and, together with the La Paloma Acquisition, the “Acquisitions”). Harquahala owns the 1,092 MW Harquahala natural gas-fired generation facility in Maricopa County, Arizona. The Harquahala closing is anticipated in conjunction with the closing of approximately US$442 million of combined term loans, letter of credit loans and revolving loans.

The Acquisitions were previously announced on November 20, 2023. The net purchase price for the Acquisitions attributable to Capital Power is US$1.1 billion, subject to working capital adjustments. Capital Power partially financed the Acquisitions with the net proceeds of an offering of subscription receipts (the “Subscription Receipts”) for approximately $400 million, which closed on November 28, 2023 and consisted of a $300 million bought public offering and a $100 million private placement with Alberta Investment Management Corporation (“AIMCo”). Capital Power also financed the Acquisitions with the net proceeds from a public offering of $850 million principal amount of unsecured medium term notes in Canada which closed on December 15, 2023. Capital Power will be responsible for the operation, maintenance and asset management of the facilities relating to the Acquisitions and will receive an annual management fee for the Harquahala facility.