SAN JOSE, Calif., May 10 /PRNewswire-FirstCall/ Calpine Corporation's
(NYSE: CPN) indirect subsidiary, Metcalf Energy Center, LLC (Metcalf LLC),
intends to commence a $155 million offering of 5.5-Year Redeemable Preferred
Shares. Concurrent with the issuance of the Preferred Shares, Metcalf LLC will
refinance, through a five-year, $100 Million Senior Term Loan, an existing
$100 million non-recourse construction credit facility. Metcalf LLC owns
Calpine's 602-megawatt Metcalf Energy Center in San Jose, Calif.
The proceeds from the offering of the Redeemable Preferred Shares will
ultimately be used as permitted by Calpine's existing bond indentures.
Proceeds from the offering of the Senior Term Loan will be used to refinance
all outstanding indebtedness under the existing construction credit facility,
to complete construction of the Metcalf power plant, to pay fees and expenses
related to the transaction, and as permitted by Calpine's existing bond
indentures.
The Redeemable Preferred Shares 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. The
Redeemable Preferred Shares will be 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
-0- 05/10/2005
/CONTACT: media, Katherine Potter, ext. 1168, or investors, Karen Bunton,
ext. 1121, both of Calpine Corporation, +1-408-995-5115/
/Web site: http://www.calpine.com/
(CPN)
CO: Calpine Corporation; Metcalf Energy Center, LLC
ST: California
IN: OIL UTI ENV
SU: OFR
UC-ND
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