LONDON - Pantheon Infrastructure PLC (LSE:PINT), a global infrastructure fund, has disclosed details regarding the sale of Calpine Corporation, a major US electricity generator, to Constellation Energy Corporation (NYSE:NASDAQ:CEG). The transaction, announced on January 10, 2025, involves a mix of cash and Constellation stock, with an equity valuation of Calpine at approximately $16.4 billion.
The sale by Energy Capital Partners (WA:CPAP) to Constellation consists of roughly 25% in cash and 75% in Constellation stock, which will be subject to certain lock-up restrictions. The equity valuation is based on Constellation’s 20-day volume-weighted average share price as of January 10, 2025. Completion of the sale is contingent upon various regulatory clearances and approvals, anticipated within the next 12 months.
For Pantheon Infrastructure, the sale is significant as it marks the first realization since its initial public offering (IPO) and is a key demonstration of the company’s investment strategy. The transaction is projected to boost Pantheon’s net asset value (NAV) by approximately 3 pence per share, equating to a 2.6% increase from the NAV reported on September 30, 2024.
Calpine, one of the largest generators of electricity from natural gas and geothermal resources in the United States, operates across several power markets, including CAISO in California, ERCOT in Texas, and PJM, which covers 13 states and the District of Columbia. The company’s current power generation capacity stands at 27 gigawatts.
Pantheon Infrastructure’s initial investment in Calpine was made in June 2022, amounting to approximately $54 million, with the use of foreign exchange hedging instruments to mitigate potential currency risks.
Details on the expected use of proceeds from the Calpine sale will be provided by Pantheon Infrastructure in due course. The information disclosed is based on a press release statement from Pantheon Infrastructure PLC.
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