Calpine: 'Very Confident' Of Closing On $1B Loan >CPN
22 Feb 15:55
By Christina Cheddar
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Calpine Corp. (CPN) shares have been on a wild ride
Friday as investors wait to hear word that the San Jose power producer
finalized an anticipated $1 billion credit line.
Calpine remains "very confident" it will be able to close on the financing,
but the company couldn't be more specific about when that would occur, said
Rick Barraza, a company spokesman.
"It's just taking a little more time than we anticipated because of the noise
in the marketplace," Barraza said.
He cited as an example the widespread concerns in the market regarding AES
Corp.'s (AES) liquidity and its ability to execute a restructuring program it
outlined earlier this week.
Calpine will issue a press release announcing the close of the financing when
it occurs, Barraza said.
In trading Friday, Calpine shares set a 52-week low of $6.35 at midday, but
the stock was recovering ground in afternoon trading. Recently, Calpine shares
changed hands at $7.08, down 24 cents, or 3.3%.
Calpine's cash sources and obligations leave little room for error if it is
to avoid tapping the capital markets this year.
Calpine announced the pending $1 billion credit line in mid-January, but
investors were unnerved last week when a filing with the Securities and
Exchange Commission revealed the financing hadn't closed yet.
In January, the company said the $1 billion credit line will allow Calpine to
borrow $350 million and provide the company with $1 billion in guaranteed
backing from banks.
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