Calpine Corporation (NYSE:CPN) announced the pricing by its indirect wholly-owned subsidiaries, Calpine Construction Finance Company, L.P. (“CCFC”) and CCFC Finance Corp., of $1.0 billion in aggregate principal amount of their 8% Senior Secured Notes due 2016 in a private placement. The aggregate principal amount of the notes offered was increased from $800 million. The net proceeds from the offering of the notes, together with certain other funds, will be used (i) to repay CCFC’s existing credit facility which matures in 2009, (ii) to redeem CCFC’s outstanding second lien notes due 2011 and (iii) to make a distribution to CCFC Preferred Holdings, LLC, the indirect parent of CCFC, which it will use to redeem its outstanding redeemable preferred shares which are mandatorily redeemable in 2011. This offering is expected to close on May 19, 2009.
The notes have not been and will not be registered under the Securities Act of 1933, as amended (the “Act”), and may not be offered or sold in the United States without registration under the Act or pursuant to an applicable exemption from such registration.
Tags: Calpine, Corporation, Notes, Secured, Senior
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