Calpine subsidiary closes $301,658,000 secured notes offering

SAN JOSE, Calif., Oct. 3, 2003 — Calpine Corp., announced that Gilroy Energy Center, LLC (GEC), a wholly owned, stand-alone subsidiary of the Calpine subsidiary GEC Holdings, LLC, has received funding on its $301,658,000 of 4% Senior Secured Notes Due 2011.

The senior secured notes are secured by GEC’s and its subsidiaries’ 11 peaking units located at nine power-generating sites in northern California. The notes also are secured by a long-term power sales agreement for 495 megawatts of peaking capacity with the State of California Department of Water Resources, which is being served by the 11 peaking units. In addition, payment of the principal of, and interest on, the notes when due is insured by an unconditional and irrevocable financial guaranty insurance policy that was issued simultaneously with the delivery of the notes.

Proceeds of the notes offering (after payment of transaction expenses, including payment of the financial guaranty insurance premium) will be used to reimburse costs incurred in connection with the development and construction of the peaker projects. The noteholders’ recourse is limited to the financial guaranty insurance policy and, insofar as payment has not been made under such policy, to the assets of GEC and its subsidiaries. Calpine has not guaranteed repayment of the notes.

In connection with this offering, Calpine has received funding on a third party preferred equity investment in GEC Holdings, LLC totaling approximately $74 million.

The 4% Senior Secured Notes Due 2011 have been offered in a private placement under Rule 144A, have not been and will not be 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.

Previous articleCES International, IBM announce integration pact
Next articleAllegheny Energy names Philip L. Goulding vice president, strategic planning, and chief commercial officer

No posts to display