CPNLQ has received funding for its $2 billion debtor-in- possession credit facility (DIP Facility). The new credit facility will help fund the company's operations as it works toward emerging from its Chapter 11 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 Chief Executive Officer Robert P. May. "This new $2 billion credit facility provides Calpine with the needed liquidity to rebuild and strengthen our company, and assure customers that they can continue to rely on Calpine for clean, reliable electricity."
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. The case was assigned to the Honorable Burton R. Lifland and the lead case number is 05-60200 (BRL). More information on Calpine's restructuring is also available on the company's web site, www.calpine.com. For access to Court documents and other general information about the Chapter 11 cases, please visit www.kccllc.net/calpine.
A major power company, Calpine Corporation supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states and in three Canadian provinces. Calpine was founded in 1984.
This news release discusses certain matters that may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the intent, belief or current expectations of Calpine Corporation and its subsidiaries ("the Company") and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results such as, but not limited to: (i) the Company's ability to continue as a going concern; (ii) the ability of the Company to operate pursuant to the terms of the debtor-in-possession facility; (iii) the Company's ability to obtain court approval with respect to motions in the Chapter 11 proceeding prosecuted by it from time to time; (iv) the ability of the Company to develop, execute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 cases; (v) risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization, for the appointment of a Chapter 11 trustee or to convert the cases to Chapter 7 cases; (vi) the ability of the Company to obtain and maintain normal terms with vendors and service providers; (vii) the Company's ability to maintain contracts that are critical to its operations; (viii) the potential adverse impact of the Chapter 11 cases on the Company's liquidity or results of operations; (ix) the ability of the Company to fund and execute its business plan;(x) the ability of the Company to attract, motivate and/or retain key executives and associates; (xi) the ability of the Company to attract and retain customers and (xii) other risks identified from time-to- time in the Company's reports and registration statements filed with the SEC, including the risk factors identified in its Annual Report on Form 10-K for the year ended December 31, 2004, and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2005, which can also be found on the Company's website at www.calpine.com. All information set forth in this news release is as of today's date, and the Company undertakes no duty to update this information.
SOURCE Calpine Corporation
