6.6.2003: Meldung: Calpine Corp.: $800 million of Senior Secured Notes
Thursday June 5, 8:45 am ET
Transaction to Significantly Advance Company"s $2.3 Billion Liquidity Program
SAN JOSE, Calif., June 5 -- Calpine Corporation (NYSE: CPN - News), a leading North American power company, today announced that Power Contract Financing, L.L.C. (PCF), a wholly owned, stand-alone subsidiary of Calpine Energy Services, L.P. (CES), intends to sell approximately $800 million of Senior Secured Notes Due 2010. The Senior Secured Notes will be secured by fixed cash flows from one of CES" fixed-priced, long-term power sales agreements with the State of California Department of Water Resources and a new fixed-priced, long-term power purchase agreement with a third party.
Proceeds and fees are subject to market conditions as of the closing date, including interest rates. Net proceeds, after funding of debt reserves and payment of transaction costs and fees, will be used to fund capital expenditures. The noteholders" recourse will be limited to the assets of PCF. Calpine will not provide a guarantee of the Senior Secured Notes Due 2010 or any other form of credit support.
The Senior Secured Notes Due 2010 will be offered in a private placement under Rule 144A, have not been 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. This press release shall not constitute an offer to sell or the solicitation of an offer to buy. Securities laws applicable to private placements under Rule 144A limit the extent of information that can be provided at this time.
Source: Calpine Corporation