Capital Power Corporation entered into a definitive agreement to acquire 1,062 MW La Paloma natural gas-fired generation facility in Kern County, California of CSG Investments, Inc.

Capital Power Corporation (TSX:CPX) entered into a definitive agreement to acquire 1,062 MW La Paloma natural gas-fired generation facility in Kern County, California of CSG Investments, Inc. on November 20, 2023. The net purchase price of the Acquisitions attributable to Capital Power is expected to be $1.1 billion (~$1.5 billion), subject to working capital and other customary closing adjustments. The transactions will be financed with concurrent CAD 400 million subscription receipt offering via a CAD 300 million public bought offering and a CAD 100 million private placement to AIMCo is expected to fully address Capital Power?s discrete equity funding for the acquisitions with the remaining funding plan preserving Capital Power?s strong financial flexibility and investment grade rating.

The Acquisitions are each expected to close in the first quarter of 2024, subject to the receipt of regulatory approvals and the satisfaction of other customary closing conditions. TD Securities Inc. and J.P. Morgan are acting as financial advisors and Winston & Strawn LLP and Simpson Thacher & Bartlett LLP are acting as legal advisors to Capital Power and BlackRock with respect to the Acquisitions. PEI Global Partners LLC is acting as sole financial advisor and White & Case LLP is acting as legal advisor to CSG Investments, Inc.