Simpson Thacher is representing Capital Power Corporation (“Capital Power”) in its proposed acquisition of the (i) 1,124 MW Hummel Station, a combined-cycle natural gas facility in Shamokin Dam, Pennsylvania and (ii) 1,023 MW Rolling Hills plant, a combustion turbine natural gas facility in Wilkesville, Ohio.
The net purchase price of the Acquisition is expected to be US$2.2 billion, subject to customary post-closing adjustments. Following the closing of the Acquisition, which is expected to close in Q3 2025, Capital Power will be positioned as one of five North American IPPs with over 10 GW of natural gas capacity.
The acquisition will be funded in part by a concurrent $500 million common share offering by Capital Power, with the remainder sourced from a combination of cash on hand, longer term debt financing, potential draws under Capital Power’s existing credit facilities, funding under committed acquisition term loan facilities and other available funds.
The Simpson Thacher team includes Eli Hunt, Javad Asghari, Sonia Lopez, Ned Simpson, Andrew Young, Matthew Anderson, Millen Trujillo and Mackenzie Holmes (Corporate); Brian Rosenzweig, Matthew Einbinder, Jason Hwang and Kevin Carson (Finance); Jonathan Goldstein and Sean Largey (Tax); Tristan Brown, Daniel Venditti and Matias Botto (Executive Compensation and Employee Benefits); and Krista McManus, Dennis Loiacono and Helene Marie Snyder (Real Estate).