Energy Capital-led Consortium to buy Calpine Corp
Debt-laden power producer Calpine Corp said it agreed to be acquired by a consortium of investors led by Energy Capital Partners for $5.6 billion.
Calpine's shares were up 10.5 percent at $14.93 in premarket trading on Friday.
The $15.25 cash per share offer, represents a 13 percent premium to Calpine's closing price on Thursday.
The consortium includes billionaire industrialist Leonard Blavatnik's Access Industries and Canada Pension Plan Investment Board.
U.S. power producers like Calpine have been hit by low wholesale power prices due to cheap natural gas, growth of renewable energy and subsidized nuclear generation in certain states.
The Houston, Texas-based company relies mostly on natural gas to generate power and owns about 80 power plants in the United States and Canada.
Calpine said in July it was discussing a sale of the company after reporting a quarterly loss. The company's debt, as a net of current portion, was about $11.31 billion, as of June 30.
Lazard was Calpine's financial adviser and White & Case LLP was its legal adviser. Barclays Capital Inc was Energy Capital's financial adviser and Latham & Watkins LLP its legal adviser.
Reporting by John Benny
