Calpine closes $2 billion DIP financing

San Jose, CA, Feb. 27, 2006 — Calpine Corp. has received funding for its $2 billion debtor in possession credit facility (DIP facility). Calpine hopes the new credit facility will help fund the company’s operations as it works toward emerging from its bankruptcy restructuring.

Deutsche Bank and Credit Suisse were co-lead arrangers for the new DIP Facility, which consists of:

* $1 billion revolving credit facility, priced at LIBOR plus 225 basis points;
* $400 million first priority term loan, priced at LIBOR plus 225 basis points; and
* $600 million second priority term loan, priced at LIBOR plus 400 basis points.

The DIP facility is secured by liens on all of the unencumbered assets of the Calpine debtors and junior liens on all of their encumbered assets, and will remain in place until the earlier of an effective plan of reorganization or December 20, 2007.

“Calpine is making good progress toward emerging from Chapter 11 as a profitable and competitive power company,” said Calpine CEO Robert P. May. “This new $2 billion credit facility provides Calpine with the needed liquidity to rebuild and strengthen our company.”

Calpine and many of its subsidiaries filed to reorganize under Chapter 11 on December 20, 2005, in the U.S. Bankruptcy Court for the Southern District of New York.

For related articles on the developing Calpine Corp. story, please read these articles:

Calpine declares compensation figures for board; purchases geothermal plants; appoints new board member

Calpine finalizes collateral structure for $2 billion DIP facility

Calpine files to reject two power plant lease agreements

Calpine Power Income Fund and its manager in dispute

Default avoided on King City Project: Calpine Power Income Fund; Scott Davido named CFO of Calpine

Calpine receives court approval of $2 billion DIP financing

Calpine announces departure of member of board

Calpine terminates tender offer for outstanding first priority senior secured notes

Calpine receives court approval of first day motions

Calpine files for bankruptcy

Calpine given time to repay debts, but not much

Calpine’s common stock to cease trading on NYSE

Fitch says Calpine exposure does not adversely affect public power sector


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