4.3.2005: Meldung: Calpine Obtains $503 Million Project Finance Facility
A group of five banks underwrote the project finance facility. Calyon served as lead arranger, underwriter, co-book runner, and administrative agent; CoBank as lead arranger, underwriter, co-book runner, and co-syndication agent; HVB Group as lead arranger, underwriter, and co-syndication agent; HSH Nordbank as lead arranger, underwriter, and co-documentation agent; and UFJ Bank Limited, as lead arranger, underwriter, and co-documentation agent.
"This marks the first time that Calpine"s strategy of managing every aspect of a power plant, from development and construction to operations and maintenance, has been financed in the broader commercial bank market," said Calpine Vice President, Finance, Brian Harenza. "We are pleased the bank market supports this next step in our evolution to a vertically integrated energy company. We appreciate the continued support of these core institutions in completing this financing, and we look forward to working with them on future transactions."
Upon closing, Calpine received approximately $97 million for construction costs spent to date on the two projects. The remaining amount available under the project finance facility will be used to fund the completion of the projects. As part of the closing, Calpine funded a $25 million letter of credit for each project as credit support for construction activities.
Calpine will sell the entire amount of the output of the Mankato project to Northern States Power under a 20-year power sales agreement. Mankato is expected to begin commercial operations in June 2006. Calpine"s wholly owned subsidiary Calpine Construction Management Company, Inc. (CCMCI) is using its Calpine Construct Plus approach to build the plant. CCMCI serves as general contractor and manages all aspects of the project including design, engineering, and equipment procurement through completion. This construction approach allows for maximum flexibility to schedule and manage work to enhance safety and quality, as well as improve plant efficiency and reliability. In addition, Calpine Operating Services Company, Inc. (COSCI), a subsidiary of Calpine, will operate and maintain the facility.
From its Freeport project, Calpine will sell steam and approximately 200 megawatts of power to The Dow Chemical Company under a 25-year power and steam sales agreement. Freeport will sell the remaining 50 megawatts of power to Calpine Energy Services, L.P., an affiliate of Calpine, under an index-based power purchase agreement. Freeport is expected to enter commercial operations in multiple stages, with the first phases expected to occur in the fall of 2005 and the last phase in November 2006. CCMCI is also building Freeport using its Calpine Construct Plus approach, and COSCI has contracted with Freeport to perform all major maintenance at the facility.
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 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.
This news release discusses certain matters that may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the intent, belief or current expectations of Calpine Corporation ("the Company") and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results such as, but not limited to, (i) the timing and extent of deregulation of energy markets and the rules and regulations adopted on a transitional basis with respect thereto; (ii) the timing and extent of changes in commodity prices for energy, particularly natural gas and electricity; (iii) commercial operations of new plants that may be delayed or prevented because of various development and construction risks, such as a failure to obtain the necessary permits to operate, failure of third-party contractors to perform their contractual obligations or failure to obtain financing on acceptable terms; (iv) unscheduled outages of operating plants; (v) a competitor"s development of lower cost generating gas-fired power plants; (vi) risks associated with marketing and selling power from power plants in the newly-competitive energy market; (vii) other risks identified from time-to-time in the Company"s reports and registration statements filed with the SEC, including the risk factors identified in its Annual Report on Form 10-K/A, amendment number 2, for the year ended December 31, 2003 and in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2004, which can also be found on the Company"s website at www.calpine.com. All information set forth in this news release is as of today"s date, and the Company undertakes no duty to update this information.
Source: Calpine Corporation