Here's the entire article from Yahoo! First, however, I have a question:
What impact will these additional shares have on the price of CPN? Over 11 million shares are being sold in this offering at the price of $69.50. That's considerably less than what CPN is trading for right now.
Tuesday August 8, 11:30 am Eastern Time
Press Release
Calpine Announces Pricing of 11.5 Million
Shares of Common Stock, $518 Million of
Convertible Preferred Securities and $1 Billion of Senior Notes
SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 8, 2000--Calpine Corporation (NYSE:CPN - news),
one of the nation's fastest growing independent power companies, announced today that it has priced
its public offering of 11,500,000 shares of common stock, including exercise of the underwriters'
over-allotment option, at $69.50 per share, the last sale price reported on the New York Stock
Exchange on August 3, 2000, the day of pricing. Calpine also announced that it has priced its public
offering of $1 billion of senior notes in two tranches: $250 million of 8-1/4% Senior Notes due 2005
and $750 million of 8-5/8% Senior Notes due 2010.
Proceeds from the common stock and senior notes offerings will be used to finance the construction
and development of additional power generation facilities, to fund recently announced acquisitions,
to refinance existing debt incurred to fund development and acquisition transactions and for working
capital and general corporate purposes.
The joint-lead underwriters for the offering of common stock are Credit Suisse First Boston;
Donaldson, Lufkin & Jenrette; and Goldman, Sachs & Co. The lead underwriter for the offerings of
the senior notes is Credit Suisse First Boston.
Copies of the final prospectus supplements for the common stock offering and the senior notes
offerings can be obtained from Credit Suisse First Boston, Eleven Madison Avenue, New York,
N.Y.
Concurrent with these offerings, Calpine announced today that it has priced $517.5 million of
convertible preferred securities, including exercise of the initial purchasers' option, in a Rule 144A
private placement, priced to yield 5%, with a conversion premium of 25%.
Proceeds from the convertible preferred securities offering will be used to refinance in full a
working capital revolving credit facility and a portion of a secured construction facility designed to
finance the development of power projects. Any remaining proceeds will be used for working
capital and general corporate purposes.
The convertible preferred securities have not been registered under the Securities Act of 1933 and
may not be offered or sold 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, nor shall
there be any sale of these securities in any state in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of any such state.
Based in San Jose, Calif., Calpine Corporation is dedicated to providing customers with reliable
and competitively priced electricity. Calpine is focused on clean, efficient combined-cycle, natural
gas-fired generation and is the nation's largest producer of renewable geothermal energy. Calpine
has launched the largest power development program in the U.S. To date, the company has
approximately 25,700 megawatts of base load capacity and 4,700 megawatts of peaking capacity in
operation, under construction, in announced development and pending acquisitions in 27 states and
Alberta, Canada. The company was founded in 1984 and is publicly traded on the New York Stock
Exchange under the symbol CPN. For more information about Calpine, visit its website at
www.calpine.com.
Contact:
Calpine Corporation
Media Relations: Katherine Potter, 408/995-5115 X1168
Investor Relations: Rick Barraza, 408/995-5115 X1125
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