15.06.05

15.6.2005: Meldung: Calpine Corp.: Plans for $357 Million of Asset Sales

Calpine Announces Plans for $357 Million of Asset Sales
Tuesday June 14, 7:30 am ET
Company Enters Into Exclusive Negotiations to Sell Four Power Plants Totaling Nearly 850 Megawatts of Capacity
Advances Program to Reduce Debt, Increase Cash Flow and Optimize Power Portfolio

SAN JOSE, Calif., June 14 / Calpine Corporation (NYSE: CPN - News) has entered into exclusive negotiations for the sale of four gas-fired power plants, representing nearly 850 megawatts of capacity. These potential power plant sales are part of Calpine"s recently announced strategic program to reduce more than $3 billion of debt by the end of 2005, increase cash flow and optimize its power plant portfolio. Three of the plants are located in the Pennsylvania-New Jersey-Maryland (PJM) power market -- the fourth is in Illinois.

Calpine has entered into four separate, non-binding agreements for the sale of the power plants. Three of the four asset sale agreements are with Tenaska Power Fund, L.P. (Tenaska). The fourth agreement is with Diamond Generating Corporation (Diamond). Completion of these four asset sales is dependent upon the execution of definitive purchase and sale agreements for each plant and other terms and conditions, including regulatory approvals. Net proceeds from any power plant sale would be used to reduce debt and as permitted by the company"s indentures.

"Calpine continues to evaluate attractive opportunities to sell non-strategic power plants," stated Calpine Chief Financial Officer Bob Kelly. "While these are strong operating plants, they present Calpine with an excellent opportunity to divest of non-core assets, strengthen its balance sheet and retain the long-term value of the company"s generating portfolio."

The proposed power plant sales include:

-- Ontelaunee Energy Center -- Located in Ontelaunee Township, this 584-megawatt, gas-fired, combined-cycle power plant entered operations in 2002 and generates electricity for the PJM power market. Calpine developed and managed construction of Ontelaunee and has a 100% interest in the power plant. The company is in exclusive negotiations with Tenaska for the sale of the plant for approximately $231 million. As part of the agreement, Calpine expects to provide operations and maintenance and other energy services to Tenaska.

-- Morris Power Plant -- Calpine has a 100% interest in this 156-megawatt, gas-fired, cogeneration plant. Located in Morris, Ill., the power plant began operations in 1998 and provides up to 77 megawatts of electricity and an average 300,000 pounds of steam per hour to Equistar Chemical under long-term agreements. Excess capacity is sold to Exelon Generating Company LLC and into the open market. The company is in exclusive negotiations with Diamond for the sale of its interest in Morris for approximately $82 million.

-- Grays Ferry Power Plant -- Located in Philadelphia, this 175-megawatt, gas-fired, cogeneration plant entered operations in 1998 and delivers electricity to PECO Energy Company and steam to Trigen-Philadelphia Energy under long-term contracts. Calpine has a 50% interest in the Grays Ferry plant. The company is in exclusive negotiations with Tenaska for the sale of its interest in Grays Ferry for approximately $37 million.

-- Philadelphia Water Works Plant (PWW) -- Also located in Philadelphia, Calpine has an 83% interest in this 23-megawatt, cogeneration power plant. PWW generates electricity from two standby generation/peaking units, fueled by natural gas, diesel and biogas. The plant, which entered operations in September 1993, supplies electricity for the Philadelphia Municipal Authority under a long-term agreement. Calpine is also in exclusive negotiations with Tenaska for the sale of PWW for approximately $7 million.

About Calpine

A major power company, Calpine Corporation supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states, three Canadian provinces and in the United Kingdom. Its customized products and services include wholesale and retail electricity, natural gas, gas turbine components and services, energy management, and a wide range of power plant engineering, construction and operations services. Calpine was founded in 1984. It is included in the S&P 500 Index and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information, visit www.calpine.com.

Source: Calpine Corporation


Calpine Prices $155 Million Preferred Shares Offering and $100 Million Senior Term Loan Refinancing for Its Metcalf Energy Center
Tuesday June 14, 8:00 am ET

SAN JOSE, Calif., June 14 / Calpine Corporation"s (NYSE: CPN - News) indirect subsidiary, Metcalf Energy Center, LLC (Metcalf LLC), has priced its $155 million offering of 5.5-Year Redeemable Preferred Shares at LIBOR plus 900 basis points. Concurrent with the pricing of the Preferred Shares, Metcalf LLC priced a five-year, $100 million Senior Term Loan at LIBOR plus 300 basis points. Calpine expects the transaction to close on Thursday, June 16, 2005.

Metcalf LLC owns Calpine"s 600-megawatt Metcalf Energy Center in San Jose, Calif. Metcalf LLC is a stand-alone subsidiary of Calpine. Calpine and other Calpine affiliates will not be responsible for the debts or other obligations of Metcalf LLC or other Metcalf entities.

The net proceeds of the offering of the Redeemable Preferred Shares will ultimately be used as permitted by Calpine"s existing bond indentures. Net proceeds from the offering of the Senior Term Loan will be used to refinance all outstanding indebtedness under the existing construction credit facility, to pay fees and expenses related to the transaction, and as permitted by Calpine"s existing indentures.

The Redeemable Preferred Shares are not registered under the Securities Act of 1933, and may not be offered in the United States absent registration or an applicable exemption from registration requirements. The Redeemable Preferred Shares were offered in a private placement in the United States under Regulation D under the Securities Act of 1933 and outside of the United States pursuant to Regulation S under the Securities Act of 1933. This press release shall not constitute an offer to sell or the solicitation of an offer to buy. Securities laws applicable to private placements limit the extent of information that can be provided at this time.


Source: Calpine Corporation
Nach oben scrollen
ECOreporter Journalistenpreise
Anmelden
x