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Friday, April 18, 2014

U.S. power producer Calpine to sell 6 plants for $1.57 bln, (NYSE: CPN)

U.S. power company Calpine Corp said it will sell six power plants in the U.S. Southeast to LS Power for $1.57 billion in cash to focus on the wholesale power markets and better align its asset base.The power plants together generated about 3.5 gigawatts of capacity in Oklahoma, Louisiana, Alabama, Florida and South Carolina.With none of the plants restricted to any project debt, Calpine expects the deal to result in net cash proceeds of about $1.53 billion.The company said the divesture is expected to add about $100 million to its adjusted earnings before interest, taxes, depreciation, and about $70 million to its adjusted free cash flow in 2014.

Calpine Corporation (Calpine) is an independent wholesale power producer in the United States. Shares of CPN fell by 0.93% or $-0.2/share to $21.37. In the past year, the shares have traded as low as $18.46 and as high as $22.16. On average, 3939230 shares of CPN exchange hands on a given day and today's volume is recorded at 2253977.



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