Calpine closed its acquisition of Noble Americas Energy Solutions, the nation’s largest independent supplier of power to commercial and industrial retail customers.

Calpine purchased Noble Solutions for $800 million plus working capital. Through collateral optimization, synergies and the runoff of acquired legacy hedges, Calpine expects net cash deployed (including working capital) of approximately $900 million by year-end 2016, declining to approximately $700 million substantially within the first year.

The acquisition was funded with a combination of cash on hand and a one-year, $550 million term loan priced at LIBOR+175 basis points. Morgan Stanley Senior Funding served as administrative agent for the lenders. MUFG Union Bank served as collateral agent.

The company intends to repay the term loan during 2017 with proceeds from announced asset sales and cash from operations, including those generated from the anticipated collateral synergies.

Concurrent with the closing of the acquisition, Calpine upsized its corporate revolver to approximately $1.8 billion through June 2020. Goldman Sachs served as administrative agent for the amended facility. Goldman Sachs Credit Partners was collateral agent. The Bank of Tokyo-Mitsubishi UFJ was successor administrative agent and MUFG served as successor collateral.

Noble Solutions currently serves commercial and industrial customers in 18 states nationwide, including California, Texas, the Mid-Atlantic and the Northeastern U.S., where Calpine’s wholesale power generation fleet is primarily concentrated.

The organization will remain headquartered in San Diego under the leadership of Jim Wood, who will remain its president and report to Trey Griggs, Calpine’s EVP and chief commercial officer. Its name will be changed to Calpine Energy Solutions, pending state-level regulatory approval.

“Noble Solutions has built an impressive retail platform serving sophisticated commercial and industrial customers, and we are excited to welcome their talented professionals into the Calpine family,” said Griggs. “The Noble Solutions team’s delivery of customized product offerings effectively manages customers’ complex energy needs. We look forward to working together to build on their track record of success and to further leverage Calpine’s complementary generation fleet to create tailored solutions for customers.”

Calpine is a generator of electricity from natural gas and geothermal resources with operations in competitive power markets.