Noble Announces Divestiture of Noble Americas Energy Solutions for USD 1.05 billion

Source Press Release
Company Noble Group LimitedCalpine Corporation 
Tags Corporate Deals, Deals, Power
Date October 10, 2016

Noble Group Limited ("Noble") today announced the sale of its Noble Americas Energy Solutions subsidiary ("NAES") to  Calpine Corporation ("Calpine"). The consideration for the divestiture consists of USD 800 million plus the repayment to Noble of NAES working capital at closing (which as of the latest set of audited accounts (31/12/15) was USD 248 million).

In addition, operating cash flows from NAES will continue to accrue to Noble up until closing of the transaction, at which point there will be a final adjustment for any changes in working capital. Furthermore, the divestiture releases approximately USD 275 million in Letters of Credit and Surety Bonds representing additional working capital which will become available to Noble."

The sale of NAES substantially completes the USD 2 billion capital raising initiative that we announced in June", said Noble’s Co-CEOs, Jeff Frase and Will Randall. "With this divestiture, Noble will continue to reduce debt while also funding growth opportunities in our high return businesses" added Mr. Frase and Mr. Randall.

Closing of the divestiture is subject to approval by Noble shareholders, expiration of the Hart Scott-Rodino waiting period and approval of the U.S. Federal Energy Regulatory Commission under Section 203 of the Federal Power Act.

It is expected that the transaction will close in December 2016.

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