Capital Power acquires two US natural gas-fired power plants for $2.2bn

Capital Power has announced the strategical acquisition of 2 flexible procreation assets successful the US for $2.2bn: the 1,124MW Hummel presumption successful Pennsylvania and the 1,023MW Rolling Hills works successful Ohio.

The transaction volition adjacent successful the 3rd 4th of 2025.

The determination positions Capital Power among the apical 5 North American autarkic powerfulness producers with much than 10GW of earthy state capacity.

The acquisition aligns with the company's strategy to grow successful the US and the PJM [Pennsylvania, New Jersey, Maryland] market.

Capital Power expects the acquisition to make an mean yearly adjusted EBITDA (earnings earlier interest, taxation, depreciation and amortisation) of astir $443m from 2026 to 2030.

To money the acquisition, the institution has launched a $500m communal stock offering, afloat covering the equity backing requirement.

Additional backing volition beryllium sourced from currency reserves, indebtedness financing and recognition facilities.

A committedness missive dated 14 April 2025 with a Canadian chartered slope affiliate of TD Securities secures $2bn successful elder unsecured word loans.

Capital Power besides has entree to $1bn nether its existing revolving recognition facilities, ensuring fiscal flexibility and maintaining its investment-grade recognition rating.

Capital Power president and CEO Avik Dey stated: “Capital Power’s acquisition of Hummel and Rolling Hills expands our US procreation fleet and advances our presumption arsenic a starring North American powerfulness producer.

“With our enlargement into the largest and astir liquid powerfulness marketplace successful North America, we proceed to present connected our strategy. These plants volition bolster our flexible procreation portfolio and align with our committedness to supply reliable, affordable powerfulness solutions that enactment a balanced attack to vigor expansion.

“As a starring relation successful North America, our quality to integrate these assets, optimise show and heighten returns done our robust trading level underpins the semipermanent worth we expect these acquisitions volition supply for our shareholders.”

The institution partnered with TD Securities and CIBC Capital Markets to contented 8,060,000 communal shares astatine $43.45 per share, raising $350m.

An over-allotment enactment could summation proceeds to $403m and a backstage placement with the Alberta Investment Management Corporation volition rise $150m.

The nationalist offering and backstage placement are acceptable to adjacent astir 22 April 2025.

The proceeds volition money the acquisition, with alternate plans for aboriginal maturation opportunities if the acquisition does not complete.

The backing program ensures Capital Power's fiscal stableness and supports its strategical maturation initiatives.