Calpine Corporation $785 Million Senior Secured Notes Offering Announcement (2014)

Summary

Calpine Corporation has announced the pricing of $785 million in first-priority senior secured notes, due in 2014, with an interest rate of 9.625%. The notes are secured by most of Calpine’s assets, including its energy holdings and subsidiary stock. The proceeds will be used to pay down existing debt. The notes are being offered privately under Rule 144A and are not registered for public sale in the U.S. The offering is expected to close on September 30, 2004.

EX-1.8 7 f02089exv1w8.txt EXHIBIT 1.8 EXHIBIT 1.8 CALPINE ANNOUNCES PRICING ON $785 MILLION OF SENIOR SECURED NOTES SAN JOSE, Calif., Sep 28, 2004 /PRNewswire-FirstCall via COMTEX/ -- Calpine Corporation (NYSE: CPN) today announced that it has priced its offering of $785 million of 9 5/8% first-priority senior secured notes due 2014, offered at 99.212% of par. These notes will be secured, directly and indirectly, by substantially all of the assets owned by Calpine, including its natural gas and power assets and the stock of Calpine Energy Services and other subsidiaries. The offering is expected to close on September 30, 2004. Net proceeds from this offering are expected to be used to redeem or repurchase existing indebtedness through open-market purchases, and as otherwise permitted by the company's indentures. The secured notes will be offered in a private placement under Rule 144A, have not been registered under the Securities Act of 1933, and may not be offered in the United States absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy. Securities laws applicable to private placements under Rule 144A limit the extent of information that can be provided at this time.