SAN JOSE, Calif., July 16, 2003 — Calpine Corp., a North American power company, today announced that it has entered into agreements for a new $500 million working capital facility.
The new first-priority senior secured facility will consist of a two-year, $300 million working capital revolver and a four-year, $200 million term loan that together will provide up to $500 million in combined cash borrowing and letter of credit capacity. The new facility replaces the company’s existing working capital facilities.
It will be secured by a first-priority lien on the same assets that secure Calpine’s recently completed $3.3 billion offering of term loan and second-priority senior secured notes.
The $300 million working capital revolver will bear interest at Libor plus 400 basis points and will mature on July 15, 2005. Initially, the company expects to use approximately $225 million of the revolver to replace existing letters of credit.
The $200 million term loan was priced at Libor plus 350 basis points and matures on July 15, 2007. Approximately $130 million of proceeds from the term loan will be used to cash collateralize existing letters of credit, with the balance being used for general corporate purposes. The Bank of Nova Scotia is the administrative agent and was a lead arranger for the facility.
“This financing, combined with our recently completed $3.3 billion offering of term loan and second-priority secured notes, further demonstrates the value of Calpine’s power generation and natural gas assets and the strength of our business model,” stated Calpine Chief Financial Officer, Bob Kelly. “We are encouraged by the market’s favorable response to our refinancings and appreciate the support and commitment of our bank group, led by The Bank of Nova Scotia. Calpine continues to advance our 2003 finance program, with several additional financing opportunities under way.”
Calpine Corporation is a North American power company dedicated to providing electric power to wholesale and industrial customers from clean, efficient, natural gas-fired and geothermal power facilities. The company generates power at plants it owns or leases in 22 states in the United States, three provinces in Canada and in the United Kingdom. Calpine is also the world’s largest producer of renewable geothermal energy, and it owns approximately one trillion cubic feet equivalent of proved natural gas reserves in Canada and the United States. 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 www.calpine.com.