7.10.2003: Meldung: Calpine Prices Canadian Natural Gas Trust
CNG Trust will issue to the public approximately 18.4 million Trust Units at a price of Cdn$10.00 per unit, for gross proceeds of approximately Cdn$184.5 million. On closing, the net proceeds from the sale of Trust Units, together with approximately Cdn$61.5 million of proceeds from a concurrent issuance of units to Calpine and bank debt of approximately Cdn$40 million, will be used to acquire mature natural gas and oil properties in Alberta, Canada. To cover over-allotments, Calpine has granted its underwriters an option to purchase up to approximately 1.8 million Trust Units for a period expiring 30 days following the closing of the offering. CNG Trust and a Canadian financial institution have arranged credit facilities in the aggregate amount of Cdn$71 million.
Calpine will initially hold 25 percent of the outstanding trust units of CNG Trust and will participate, by way of investment, in the business strategy of the CNG Trust. Calpine will have the option to purchase up to 100 percent of CNG Trust""s ongoing production for use in its North America power generation assets.
A final prospectus was filed with securities commissions or similar authorities in each of the provinces and territories of Canada today. The offering is expected to close on October 15, 2003, with the first cash distribution expected to be paid on or about December 15, 2003 to unitholders of record as of November 30, 2003. The initial monthly distribution is expected to be $0.15 per Trust Unit. CNG Trust will make monthly cash distributions to its unitholders.
The Toronto Stock Exchange has conditionally approved the listing of the Trust Units, subject to the fulfillment of customary conditions. It is expected that the Trust Units will trade under the symbol CXT.UN.
CNG Trust will acquire from Calpine select natural gas and crude oil properties in several major natural gas and oil fields throughout Alberta, Canada, including interests in the Markerville, Sylvan Lake and Innisfail areas. The average daily net production of the initial properties for the six months ending June 30, 2003 was approximately 28 million cubic feet of natural gas equivalent per day, with proven reserves of approximately 83 billion cubic feet of natural gas equivalent (as of June 20, 2003). An executive team, independent of Calpine, will manage the CNG Trust. The majority of the board of directors of CNG Trust will be independent, with Calpine initially appointing three of the seven directors.
Calpine""s participation in the CNG Trust will allow it to increase its competitiveness in the acquisition and development of additional natural gas reserves in Canada to fuel its power generation portfolio in North America. The proceeds generated by Calpine from the sale of the natural gas and oil properties to the CNG Trust will be used for general corporate purposes.
Scotia Capital Inc. is the lead underwriter for the offering.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. A prospectus relating to these securities has been filed with securities commissions or similar authorities in each of the provinces and territories of Canada. This news release shall not constitute an offer to buy these securities in any state of the United States or province or territory of Canada.
Calpine Corporation is a leading North American power company dedicated to providing electric power to wholesale and industrial customers from clean, efficient, natural gas-fired and geothermal power facilities. The company generates power at plants it owns or leases in 22 states in the United States, three provinces in Canada and in the United Kingdom. Calpine is also the world""s largest producer of renewable geothermal energy, and it owns approximately one trillion cubic feet equivalent of proved natural gas reserves in Canada and the United States. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information about Calpine, visit http://www.calpine.com/.