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Constellation Extends Gains After Calpine Secures Texas Loan for 460-MW Peaker

The Texas Energy Fund financing reduces project risk for a plant tied to Constellation’s pending Calpine acquisition.

Overview

  • Calpine said it obtained a loan agreement from the Texas Energy Fund to help build a 460-megawatt peaking facility next to its Freestone Energy Center.
  • Constellation shares closed more than 2% higher on Tuesday, outpacing the S&P 500’s 0.3% rise.
  • The rally carried into the next session, with the stock up about 2.9% as of 12:09 a.m. ET on Wednesday, aided by bullish analyst commentary.
  • Calpine disclosed no financial terms for the loan; the plant is already under construction and targeted to be operational in 2026.
  • Constellation agreed in January to acquire Calpine in a roughly $16.4 billion cash-and-stock deal, including the assumption of about $12.7 billion of debt, with closing expected this quarter pending approvals.