Calpine Corporation Announces Senior Secured Notes Offering
Calpine Corporation (NYSE: CPN) today announced that it intends to offer $550,000,000 in aggregate principal amount of its
5.250% Senior Secured Notes due 2026 in a private placement. The notes will be issued as additional notes under the indenture
governing Calpine Corporation’s 5.250% Senior Secured Notes due 2026 that were issued on May 31, 2016. The notes will be guaranteed
by each of Calpine Corporation’s current and future subsidiaries that is a guarantor under Calpine Corporation’s first lien credit
facilities. The notes and related guarantees will be secured equally and ratably with the indebtedness incurred under Calpine
Corporation’s first lien credit facilities and other indebtedness that is permitted to be secured by such assets, by a
first-priority lien on substantially all of Calpine Corporation’s and certain of the guarantors’ existing and future assets,
subject to certain exceptions and permitted liens.
Calpine Corporation intends to use the proceeds from this offering, together with cash on hand and proceeds from a new
$1,000,000,000 first lien term loan facility maturing in January 2025 that Calpine Construction Finance Company, L.P., an indirect,
wholly-owned subsidiary of Calpine Corporation, intends to enter into concurrently with the closing of this offering, to (i) repay
approximately $1.6 billion of borrowings outstanding under Calpine Construction Finance Company, L.P.’s first lien term loan
facility with tranches maturing in 2020 and 2022, terminating the facility in connection therewith and (ii) pay fees and expenses
in connection with this offering, the new first lien term loan facility and such repayments and termination.
The notes will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be
offered or sold in the U.S. without registration under the Securities Act or pursuant to an applicable exemption from such
registration.
This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, any security and nor shall there
be any offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be
unlawful.
About Calpine
Calpine Corporation is America’s largest generator of electricity from natural gas and geothermal resources with operations in
competitive power markets. Our fleet of 80 power plants in operation or under construction represents approximately 26,000
megawatts of generation capacity. Through wholesale power operations and our retail businesses Calpine Energy Solutions and Champion Energy, we serve customers in 25 states, Canada and Mexico. Our clean, efficient, modern and flexible
fleet uses advanced technologies to generate power in a low-carbon and environmentally responsible manner. We are uniquely
positioned to benefit from the secular trends affecting our industry, including the abundant and affordable supply of clean natural
gas, environmental regulation, aging power generation infrastructure and the increasing need for dispatchable power plants to
successfully integrate intermittent renewables into the grid.
Forward-Looking Information
In addition to historical information, this release contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Forward-looking statements may appear throughout this release or in Calpine’s reports and
registration statements filed with the Securities and Exchange Commission. Words such as “believe,” “intend,” “expect,”
“anticipate,” “plan,” “may,” “will,” “should,” “estimate,” “potential,” “project” and similar expressions identify forward-looking
statements. Such statements include, among others, those concerning expectations regarding the use of proceeds from the offering,
expected financial performance and strategic and operational plans, as well as assumptions, expectations, predictions, intentions
or beliefs about future events. We believe that the forward-looking statements are based upon reasonable assumptions and
expectations. However, 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.
Please see the risks identified in this release or in Calpine’s reports and registration statements filed with the Securities
and Exchange Commission, including, without limitation, the risk factors identified in its Annual Report on Form 10-K for the year
ended December 31, 2016. 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. Given the risks and uncertainties surrounding forward-looking statements, you should not place
undue reliance on these statements. Many of these factors are beyond our ability to control or predict. Our forward-looking
statements speak only as of the date of this release. Actual results or developments may differ materially from the expectations
expressed or implied in the forward-looking statements, and, other than as required by law, Calpine undertakes no obligation to
update any such statements, whether as a result of new information, future events, or otherwise.
Calpine Corporation
Media Relations:
Brett Kerr, 713-830-8809
brett.kerr@calpine.com
or
Investor Relations:
Bryan Kimzey, 713-830-8775
bryan.kimzey@calpine.com
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