Capital Power completes acquisition of the Hummel and Rolling Hills facilities in PJM for US$2.2 billion (CAD ~$3.01 billion)
Press Release
June 09, 2025
EDMONTON, Alberta – Capital Power Corporation (TSX: CPX) (“Capital Power” or the “Company”) is pleased to announce the closing today of the previously announced acquisition of 100% of the equity interests in:
- Hummel Station, LLC (“Hummel”), owner of the 1,124MW Hummel combined cycle natural gas facility in Shamokin Dam, Pennsylvania (the “Hummel Acquisition”); and
- Rolling Hills Generating, LLC (“Rolling Hills”), owner of the 1,023MW Rolling Hills plant, a combustion turbine natural gas facility in Wilkesville, Ohio (the “Rolling Hills Acquisition” and together with Hummel Acquisition, the “Acquisition”).
The Federal Energy Regulatory Commission approved the Acquisition on June 2, 2025, and the applicable waiting period under the Hart-Scott-Rodino Act, expired on June 4, 2025.
The Acquisition was previously announced on April 14, 2025. Capital Power partially financed the Acquisition with net proceeds from an offering of common shares (the “Equity Offering”) and a private offering of senior notes (the “Notes Offering”). The Equity Offering, which closed on April 22, 2025, consisted of total gross proceeds of $667 million, including an approximately $517 million bought public offering and an approximately $150 million private placement with Alberta Investment Management Corporation. The Notes Offering, which closed on May 28, 2025, consisted of a private offering of US$1.2 billion aggregate principal amount of senior notes in the U.S. issued by Capital Power (US Holdings) Inc., a U.S. wholly owned subsidiary of the Company, and guaranteed by the Company and the Company’s subsidiaries that guarantee the Company’s revolving credit facilities. The balance of the Acquisition was funded with additional cash on hand and a drawdown on the Company’s existing revolving credit facilities. On April 14, 2025, the Company announced that it had entered into a Commitment Letter for an acquisition term loan with a Canadian chartered bank to fund up to $2 billion of the Acquisition purchase price. The Company will not be drawing on the acquisition term loan and the Commitment Letter will be terminated.
All references to dollar amounts contained herein, including the symbol “$”, are to Canadian dollars unless otherwise indicated. Where applicable, amounts were converted from US dollars to Canadian dollars using a 1.3890 exchange rate, as reported by the Bank of Canada on April 11, 2025.
Media Relations
Katherine Perron
(780) 392-5335
kperron@capitalpower.com
Investor Relations
Noreen Farrell
(403) 461-5236
investor@capitalpower.com
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