EDF Development to acquire interest in Constellation Energy Nuclear Group
The Constellation Energy Nuclear Group owns 3,869MW of nuclear generating capacity, which consists of the Calvert Cliffs nuclear power plant (NPP) in Maryland, and Nine Mile Point NPP and RE Ginna NPP in New York. EDF Development's interest in the Constellation Energy Nuclear Group will be structured as a new joint venture (JV) between the companies, separate from the existing UniStar JV. Under the agreement, EDF Development will make an immediate $1 billion cash investment in Constellation Energy through the purchase of newly issued Constellation Energy Series B non-convertible cumulative preferred stock, which will be surrendered to Constellation Energy upon closing of the transaction and credited against the $4.5 billion purchase price for EDF's interest in the Constellation Energy Nuclear Group. To provide Constellation Energy with additional liquidity support, EDF Development and Constellation Energy have entered into a two-year asset put option that allows Constellation Energy to sell to EDF up to $2 billion of non-nuclear generation assets. The EDF Group has provided Constellation Energy a $600 million interim backstop liquidity facility, which will remain available until receipt of all regulatory approvals relating to the transfer of the non-nuclear generation assets that could be sold under the asset put option or the date that is six months after the date of the investment agreement, whichever is earlier.