Noble sells North America energy unit to Calpine Corp. in US$1.05 bn deal

The Singapore-listed physical commodities trader Noble Group is selling its Noble Americas Energy Solutions (NAES) subsidiary to Calpine Corporation for US$800 million plus working capital. The sale of Noble’s San Diego, California-based energy unit largely completes the company’s drive to raise US$2 billion in capital as it cuts expenses and discards assets.

The NAES divestiture includes a working capital repayment, estimated to be at US$248 million, according to the company’s last audit. Noble will still continue to receive NAES operating cash flows up until the transaction closes wherein a final adjustment will be made for any working capital changes.

The sale will also release around US$275 million in Letters of Credit and Surety Bonds that will become available to Noble as additional working capital.

“The sale of NAES substantially completes the US$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 Frase and Randall.

The transaction is expected to close in December 2016 upon the necessary approvals.