Calpine finalizes collateral structure for $2 billion DIP facility

San Jose, CA, Feb. 13, 2006 — As part of finalizing its $2 billion debtor-in-possession (DIP) collateral structure, Calpine Corp. announced that it has paid off the existing operating lease and related debt for its Geysers geothermal assets for approximately $275 million.

As previously announced, Calpine said that it intended to retire certain obligations at The Geysers through its $2 billion DIP facility, which was approved on January 25, 2006.

With this transaction, Calpine has a 100 percent ownership interest in its Geysers assets. The company’s DIP facility will be secured by these Geysers assets, together with liens on all of the unencumbered assets and junior liens on all of the encumbered assets of Calpine and its subsidiaries that are debtors-in-possession.

The company previously leased its 19 Geysers power plants from Steam Host LLC and sold up to 750 megawatts of geothermal power into the northern California power market. Calpine’s geothermal power plants and steam fields are located in the Geysers region of northern California.

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 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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