Calpine Completes Sale of Its Saltend Energy Centre
July 28 2005 - 10:21AM
PR Newswire (US)
Calpine Completes Sale of Its Saltend Energy Centre SAN JOSE,
Calif., July 28 /PRNewswire-FirstCall/ -- A Calpine Corporation
(NYSE:CPN) subsidiary has completed the sale of its 1,200-megawatt
Saltend Energy Centre in Hull, England for a total purchase price
of 490 million pounds sterling, or approximately $US848 million,
plus adjustments for working capital of $US14.5 million. The
transaction, which has generated total gross proceeds to Calpine of
$US862.5 million (subject to post-closing adjustment), is part of
the company's strategic program to reduce debt and optimize its
power plant portfolio. Calpine has sold the natural gas-fired
Saltend power plant to a company indirectly owned by International
Power plc and Mitsui & Co., Ltd. Calpine acquired the plant in
August 2001 for the sterling equivalent of approximately $810
million. With the completion of this transaction, Calpine no longer
owns any interest in Saltend. "The sale of Saltend has allowed
Calpine to capture significant value for our investment," said
Calpine Chief Financial Officer Bob Kelly. "The proceeds from this
sale will allow Calpine to reduce debt and focus our efforts on the
North American power market." The two existing series of Redeemable
Preferred Shares relating to the Saltend Energy Centre were
redeemed in connection with the sale. The remaining net proceeds
are being held under the control of Calpine's subsidiary Calpine
Canada Resources Company pursuant to an interim order issued
yesterday, pending final decision, by the Supreme Court of Nova
Scotia in the current litigation commenced in May by Harbert
Distressed Investment Master Fund, Ltd. The final decision of that
Court is expected within the next week. Calpine Corporation is a
North American power company dedicated to providing electric power
to customers from clean, efficient, natural gas-fired and
geothermal power plants. The company generates power at plants it
owns or leases in 21 states in the United States and three
provinces in Canada. The company is included in the S&P 500.
Calpine was founded in 1984 and is publicly traded on the New York
Stock Exchange under the symbol CPN. For more information, visit
http://www.calpine.com/. DATASOURCE: Calpine Corporation CONTACT:
media relations, Bill Highlander, ext. 1244, or investor relations,
Karen Bunton, ext. 1121, both of Calpine, +1-408-995-5115 Web site:
http://www.calpine.com/
Copyright
Calpine (NYSE:CPN)
Historical Stock Chart
From Sep 2024 to Oct 2024
Calpine (NYSE:CPN)
Historical Stock Chart
From Oct 2023 to Oct 2024