Capital Power and Apollo Funds Form MOU for Up to $3 Billion U.S. Natural Gas Generation Partnership

Simpson Thacher represented Capital Power Corporation in connection with its memorandum of understanding with funds managed by affiliates of Apollo Global Management, Inc. in relation to a proposed investment partnership. The transaction contemplates the formation of an investment partnership combining the capital resources of the Apollo-managed funds with Capital Power’s operating and commercial expertise to pursue acquisitions of merchant U.S. natural gas generation assets. The partnership is intended to accelerate Capital Power’s U.S. natural gas growth strategy and to expand earnings by acquiring and operating merchant generation assets. Under the MOU, the partnership contemplates potential committed equity of up to $3.0 billion, comprising equity commitments of up to $2.25 billion from the Apollo-managed funds and $750 million from Capital Power. Capital Power may elect a 25% to 50% working interest in each acquisition, will operate acquired assets and will receive management and performance fees in connection with those assets. Capital Power is a leading independent power producer with approximately 12 GW of generation capacity across 32 facilities, together with battery energy storage, operating across North America. Simpson Thacher represented client Capital Power Corporation with a team composed by: Eli Hunt, Javad Asghari, Sonia Lopez and Soraia Esteves.

Capital Power and Apollo Funds Form MOU for Up to $3 Billion U.S. Natural Gas Generation Partnership

Read the full story

Cookie Preferences

Strictly Necessary

Analytics & Statistics

Marketing & Ads