SAN JOSE, Calif., March 12, 2002 — Calpine Corp. announced Tuesday that it has closed a new, $1.6-billion secured credit facility. This new facility provides Calpine with capacity for combined cash borrowings and letters of credit of up $2.0 billion.
To obtain the new credit facility and change the company’s $400 million credit facility, Calpine put up for collateral its interests interests in its natural gas properties, the Saltend power plant in the United Kingdom and Calpine’s equity investment in nine U.S. power plants.
The proceeds of the borrowings under the credit facilities will be used to finance Calpine’s capital expenditures and, subject to the limits of Calpine’s existing bond indentures, for other general corporate purposes. The credit facilities include:
— A new $1.0-billion and an amended $400-million revolving credit facility, expiring on May 24, 2003, that together provide $1.4 billion in borrowing and letters of credit capacity;
— A new two-year, $600-million term loan that will be available upon satisfaction of certain conditions, which the company expects to satisfy within the next 30 days.
“This substantially expanded facility is an important step in our continuing program to strengthen Calpine’s liquidity,” said Pete Cartwright, chairman and CEO of Calpine. “We’re committed to building a substantial liquidity cushion, and we have made significant progress towards this goal. We are in negotiations on a wide range of additional opportunities to further enhance our liquidity.”
“Over the last six months, Calpine has raised over $6 billion. This new facility demonstrates our ability to continue to raise capital even in today’s difficult financial and power markets,” said Bob Kelly, president of Calpine Finance. “Calpine remains committed to restoring — or attaining — investment grade ratings and to taking additional steps to enhance its creditworthiness, including repaying debt.”
The banks in the new credit facility are The Bank of Nova Scotia, Citibank, Bank of America, Bayerische Landesbank Girozentrale, Credit Suisse First Boston, Deutsche Bank, The Toronto-Dominion Bank and ING Barings.
2002 Liquidity Update
Calpine is concluding negotiations for the outsourcing of certain blocks of power for 2002 and continues negotiations for broader alliances involving its Calpine Energy Services (CES) group — each of which will reduce Calpine’s liquidity requirements related to CES.