SAN JOSE, Calif., Aug. 7 /PRNewswire-FirstCall/ --
Calpine Corporation (NYSE: CPN), a leading North American power company, today
announced that its wholly owned subsidiary, Calpine Construction Finance
Company, L.P. (CCFC I), has priced its $750 million institutional term loans
and secured notes offering.
The offering will include:
-- $385 million of First Priority Secured Institutional Term Loans Due
2009 offered at 99% of par and priced at Libor plus 600 basis points, with a
Libor floor of 150 basis points.
-- $365 million of Second Priority Secured Floating Rate Notes Due 2011
offered at 98.01% of par and priced at Libor plus 850 basis points, with a
Libor floor of 125 basis points.
The noteholders' recourse will be limited to CCFC I's seven natural
gas-fired electric generating facilities located in various power markets in
the United States, and related assets and contracts. The transaction is
expected to close on Thursday, August 14, 2003.
Net proceeds from the offering will be used to refinance a portion of CCFC
I's existing indebtedness, which matures in November 2003. The remaining
balance of CCFC I will be repaid from cash on hand. Current outstanding
indebtedness, including letters of credit under the CCFC I credit facility, is
approximately $910 million.
The First Priority Secured Institutional Term Loans Due 2009 will be
placed in the institutional term loan market. The Second Priority Secured
Floating Rate Notes Due 2011 will be offered in a private placement under Rule
144A, have not been and will not be 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
CONTACT: media, Katherine Potter, ext. 1168, or investors, Rick Barraza,
ext. 1125, both of Calpine Corporation, +1-408-995-5115/
/Web site: http://www.calpine.com
