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CONTACTS:
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NEWS
RELEASE
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Relations:
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Investor
Relations:
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Mel
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Andre
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713-570-4553
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Calpine
Draws $725 Million Under Its Master Credit Agreement
(HOUSTON,
Texas and SAN JOSE, Calif.) –
Oct.1, 2008 – Calpine Corporation (NYSE:CPN) announced today it is
drawing approximately $725 million under its $1 billion Senior Secured Revolving
Facility under its Exit Financing, which expires in March 29, 2014.
“This
draw is a proactive financial decision to preserve our liquidity by increasing
our cash position during this period of uncertainty in the capital markets,”
said Zamir Rauf, interim executive vice president and chief financial
officer. “This draw is not being made to satisfy any near-term needs
but to enhance the quality of our liquidity.”
With this
draw, the company expects to have an estimated $1.265 billion of corporate
unrestricted cash on Oct. 1, 2008, as reflected in the table below:
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($mm)
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Corporate
Unrestricted Cash(1)(2)
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$1,250
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Revolver
/ LC Availability
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15
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Liquidity
(current)(3)
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1,265
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(1)
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Pro
forma for $725 million revolver
draw.
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(2)
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Excludes
balances subject to project finance facilities and lease agreements of
approximately $246 million which would be included in cash and cash
equivalents, the most comparable GAAP
measure.
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(3)
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Does
not include $350 million of contingent liquidity from the Knock-In and
Contingent Commodity Revolver
facilities.
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About
Calpine
Calpine
Corporation is helping meet the needs of an economy that demands more and
cleaner sources of electricity. Founded in 1984, Calpine is a major
U.S. power company, currently capable of delivering nearly 24,000 megawatts of
clean, cost-effective, reliable, and fuel-efficient electricity to customers and
communities in 16 states in the United States. The Company operates low-carbon,
natural gas-fired, and renewable geothermal power plants. Using advanced
technologies, Calpine generates electricity in a reliable and environmentally
responsible manner for the customers and communities it serves. Please visit
www.calpine.com for more information.
- more
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Calpine
Draws $725 Million Under Its Master Credit Agreement
Page 2
Oct. 1, 2008
Forward Looking
Information
In
addition to historical information, this release contains forward-looking
statements within the meaning of
Section 27A of the Securities Act and Section 21E of the Exchange Act. Words
such as “believe,” “intend,” “expect,” “anticipate,” “plan,” “may,” “will” and
similar expressions identify forward-looking statements. Such statements
include, among others, those concerning expected financial performance and
strategic and operational plans, as well as all assumptions, expectations,
predictions, intentions or beliefs about future events. You are cautioned that
any such forward-looking statements are not guarantees of future performance and
that a number of risks and uncertainties could cause actual results to differ
materially from those anticipated in the forward-looking statements. Such risks
and uncertainties include, but are not limited to: (i) Calpine’s ability to
implement its business plan; (ii) financial results that may be volatile and may
not reflect historical trends; (iii) seasonal fluctuations of results and
exposure to variations in weather patterns; (iv) potential volatility in
earnings associated with fluctuations in prices for commodities such as natural
gas and power; (v) ability to manage liquidity needs and comply with covenants
related to its exit credit facility and other existing financing obligations;
(vi) Calpine’s ability to complete the implementation of its Plan of
Reorganization and the discharge of its chapter 11 cases including successfully
resolving any remaining claims; (vii) disruptions in or limitations on the
transportation of natural gas and transmission of electricity; (viii) the
expiration or termination of power purchase agreements and the related results
on revenues; (ix) risks associated with the operation of power plants including
unscheduled outages; (x) factors that impact the output of Calpine’s geothermal
resources and generation facilities, including unusual or unexpected steam field
well and pipeline maintenance and variables associated with the waste water
injection projects that supply added water to the steam reservoir; (xi) risks
associated with power project development and construction activities; (xii)
ability to attract, retain and motivate key employees including filling certain
significant positions within Calpine’s management team; (xiii) ability to
attract and retain customers and counterparties; (xiv) competition; (xv) risks
associated with marketing and selling power from plants in the evolving energy
markets; (xvi) present and possible future claims, litigation and enforcement
actions; (xvii) effects of the application of laws or regulations, including
changes in laws or regulations or the interpretation thereof; and (xviii) other
risks identified from time-to-time in Calpine’s reports and registration
statements filed with the SEC, including, without limitation, the risk factors
identified in its Annual Report on Form 10-K for the year ended December 31,
2007. Actual results or developments may differ materially from the expectations
expressed or implied in the forward-looking statements and Calpine undertakes no
obligation to update any such statements. Unless specified otherwise, all
information set forth in this release is as of today's date and Calpine
undertakes no duty to update this information. For additional information about
Calpine's chapter 11 reorganization or general business operations, please refer
to Calpine's Annual Report on Form 10-K for the fiscal year ended December 31,
2007, and any other recent Calpine report to the Securities and Exchange
Commission. These filings are available by visiting the Securities and Exchange
Commission's website at www.sec.gov or
Calpine's website at www.calpine.com.
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