Posted on 07/07/2005 8:17:21 AM PDT by MeneMeneTekelUpharsin
NEW YORK, July 7 (Reuters) - Calpine Corp. (CPN.N: Quote, Profile, Research) on Thursday said its subsidiary Calpine Construction Finance Co. launched a tender offer for some of its 9.75 percent second priority senior secured floating rate notes due 2011. Calpine said it was offering to buy the notes at par plus accrued interest through the purchase date, using expected net proceeds of about $225 million from the prospective sale of the Ontelaunee Energy Center.
However, Calpine said it can only buy the notes after offering to repay debt under its term loans, which currently have $379.2 million outstanding. If term-loan holders accept repayment in an amount that exceeds the net proceeds from the Ontelaunee sale, Calpine said, no notes will be bought. The tender for the notes is set to expire on Aug. 3.
They still need to start operating profitably. Asset sales and debt buybacks will not be enough.
Extremely hot summer so far. Balancing in TX a major problem ($599 p/Mgwt for about 5 hours yesterday). Calpine is making money this summer.
I hope Calpine was generating to their schedules. The companies that were obtaining there requirement through the Balancing market took a major hickey.
good news. I bought CPN stock at about $1.00/share. Obviously i want this to SOMEDAY get back to where I bought it.
$1.00 = $10.00 oops
Don't want to rain on your parade and I own both shares and bonds of Calpine but very little power is sold through balancing and off peak Calpine is virtually idle. The question that has still not been answered is whether there is a role for natural gas in baseload generation when hydro, coal, and nuclear are so much cheaper.
"but very little power is sold through balancing"
I agree the amount is small, but Calpine has a majority of it. Calpine being in the ERCOT market is critical for it to continue to function.
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