CPN Calpine Corp.

Calpine Announces Pricing of CalGen Term Loans and Secured Notes Company to Realize Weighted Average Coupon of 7.5% SAN JOSE, Calif., March 12 /PRNewswire-FirstCall/ -- Calpine Corporation today announced that its wholly owned subsidiary Calpine Generating Company, LLC (CalGen), formerly Calpine Construction Finance Company II, LLC (CCFC II), has priced its offering of secured institutional term loans and secured notes. Calpine will realize total proceeds from the offering in the amount of $2.405 billion, before transaction costs and fees. The offering, which is expected to close on March 23, 2004, will include: -- $835 million in combination of non-recourse Super Priority Floating Rate Secured Institutional Term Loans and Notes Due 2009 priced at Libor plus 375 basis points, with a Libor floor of 125 basis points; -- $740 million in combination of non-recourse Floating Rate Senior Secured Institutional Term Loans and Notes Due 2010 priced at Libor plus 575 basis points, with a Libor floor of 125 basis points; -- $680 million of non-recourse Floating Rate Secured Notes Due 2011 priced at Libor plus 900 basis points, with a Libor floor of 125 basis points; and -- $150 million of non-recourse Fixed Rate Secured Notes Due 2011 priced at 11.50%. The term loans and secured notes described above will in each case be secured, through a combination of direct and indirect stock pledges and asset liens, by CalGen's 14 power generating facilities and related assets located throughout the United States, and the lenders' recourse will be limited to such security. None of the indebtedness will be guaranteed by Calpine Corporation. Net proceeds from the offerings will be used to refinance amounts outstanding under the $2.5 billion CCFC II credit facility, which matures in November 2004, and to pay fees and transaction costs associated with the refinancing. Current outstandingindebtedness and letters of credit under the CCFC II credit facility total approximately $2.3 billion. The secured institutional term loans will be placed in the institutional term loan market. The secured notes will be offered in a private placementunder Rule 144A, 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. 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. DATASOURCE: Calpine Corporation CONTACT: Media Relations, Katherine Potter, ext. 1168, or Investor Relations, Rick Barraza, ext. 1125, both of Calpine Corporation, +1-408-995-5115 Web site: http://www.calpine.com/

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