Calpine Corporation Announces Senior Secured Notes Offering
January 10 2011 - 7:31AM
Business Wire
Calpine Corporation (NYSE:CPN) today announced that it intends
to offer $1.2 billion in aggregate principal amount of Senior
Secured Notes due 2023 in a private placement. The notes will be
guaranteed by each of Calpine Corporation’s current and future
subsidiaries that is a guarantor under Calpine Corporation’s
revolving credit facility. The notes and related guarantees will be
secured equally and ratably with the indebtedness incurred under
Calpine Corporation’s revolving credit facility and other
indebtedness that is permitted to be secured by such assets, by a
first-priority lien on substantially all of Calpine Corporation’s
and certain of the guarantors’ existing and future assets, subject
to certain exceptions and permitted liens. Calpine Corporation
intends to use the net proceeds from this offering, together with
cash on hand, to repay the remaining $1.2 billion of term loan
borrowings outstanding under its existing credit facility,
terminating the facility in connection therewith, and to pay fees
and expenses in connection with the offering and such repayment and
termination.
The notes have not been and will not be registered under the
U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold
in the U.S. without registration under the Securities Act or
pursuant to an applicable exemption from such registration.
This announcement does not constitute an offer to sell, or the
solicitation of offers to buy, any security and shall not
constitute an offer, solicitation or sale of any security in any
jurisdiction in which such offer, solicitation or sale would be
unlawful.
About Calpine
Founded in 1984, Calpine Corporation is a major U.S. power
company, currently capable of delivering approximately 27,500
megawatts of clean, cost-effective, reliable and fuel-efficient
power from its 91 operating plants to customers and communities in
20 states in the United States and Canada. Calpine Corporation is
committed to helping meet the needs of an economy that demands more
and cleaner sources of electricity. Calpine Corporation owns,
leases and operates low-carbon, natural gas-fired and renewable
geothermal power plants. Using advanced technologies, Calpine
Corporation generates power in a reliable and environmentally
responsible manner for the customers and communities it serves.
Forward-Looking Statements
This release contains “forward-looking statements” within the
meaning of Section 27A of the U.S. Securities Act of 1933, as
amended, and Section 21E of the U.S. Securities Exchange Act of
1934, as amended. Words such as “believe,” “intend,” “expect,”
“anticipate,” “plan,” “may,” “will,” “should,” “estimate,”
“potential,” “project” and similar expressions identify
forward-looking statements. Such statements include, among others,
those concerning expected financial performance and strategic and
operational plans, as well as all assumptions, expectations,
predictions, intentions or beliefs about future events. You are
cautioned that any such forward-looking statements are not
guarantees of future performance and that a number of risks and
uncertainties could cause actual results to differ materially from
those anticipated in the forward-looking statements. Please see the
risks identified in this release or in Calpine Corporation’s
reports and registration statements filed with the Securities and
Exchange Commission, including, without limitation, the risk
factors identified in its Annual Report on Form 10-K for the year
ended Dec. 31, 2009, and its Quarterly Reports on Form 10-Q for the
quarters ended March 31, 2010, June 30, 2010 and September 30,
2010. These filings are available by visiting the Securities and
Exchange Commission’s Web site at www.sec.gov or Calpine
Corporation’s Web site at www.calpine.com. Actual results or
developments may differ materially from the expectations expressed
or implied in the forward-looking statements. Other than as
required by law, Calpine Corporation undertakes no obligation to
update any such statements, whether as a result of new information,
future events, or otherwise.
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