$1.4 Billion Available Under Unsecured Working Capital Facilities
SAN JOSE, Calif., Jan. 10 /PRNewswire-FirstCall/ -- San Jose, Calif.-based
Calpine Corporation (NYSE: CPN) today announced that it has received
commitment letters from its lenders for an additional $1 billion unsecured
working capital credit facility. This new one-year facility will enable
Calpine to borrow up to $350 million and will provide Calpine with up to
$1 billion of letter of credit capacity. Calpine expects to close the new
facility by the end of January.
Added to the company's existing $400 million unsecured working capital
credit facility, which expires on May 24, 2003, Calpine will have access to up
to $750 million in borrowing capacity and up to $1.4 billion of letter of
credit capacity.
Bob Kelly, president of Calpine Finance Company, said, "This additional
$1 billion unsecured working capital credit facility is a strong vote of
confidence from our commercial bank lenders. Including our revolving
construction credit facilities, we now have $4.9 billion of bank financing in
place."
"Along with our recent sale of $1.2 billion of convertible debentures,
this new credit capacity clearly demonstrates that Calpine has competitive and
timely access to the capital markets, providing sufficient liquidity to meet
our current and ongoing capital requirements," added Kelly.
The banks in Calpine's new credit facility are The Bank of Nova Scotia,
Bank of America, Bayerische Landesbank Girozentrale, Citibank, Credit Suisse
First Boston, Deutsche Bank, and The Toronto-Dominion Bank.
Based in San Jose, Calif., Calpine Corporation is dedicated to providing
customers with reliable and competitively priced electricity. Calpine is
focused on clean, efficient, natural gas-fired generation and is the world's
largest producer of renewable geothermal energy. Calpine's projects are
located in 29 states in the United States, three provinces in Canada and in
the United Kingdom. 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 its website at 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, as amended, and are subject to the safe harbor created by the Private
Securities Litigation Reform Act of 1995. These statements include
declarations regarding Calpine's or Calpine's management's intents, beliefs or
current expectations. Any forward-looking statements are not guarantees of
future performance and actual results could differ materially from those
indicated by the forward-looking statement. Forward-looking statements involve
known and unknown risks, uncertainties, and other factors that may cause
Calpine's or Calpine's industry's actual results, levels of activity,
performance or achievements to be materially different from any future
results, levels of activity, performance or achievements expressed or implied
by such forward-looking statements. Among the important factors that could
cause actual results to differ materially from those indicated by such
forward-looking statements are the following: (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,
which may be impacted by unseasonable weather patterns and systematic economic
slowdowns. Prospective investors are also referred to the other risks
identified from time to time in Calpine's reports and registration statements
filed with the Securities and Exchange Commission.
SOURCE Calpine Corporation
CONTACT: media, Bill Highlander, ext. 1244, or investors, Rick Barraza,
ext. 1125, both of Calpine Corporation, +1-408-995-5115/
