SAN JOSE, Calif., April 23 -- Calpine Corporation
(NYSE: CPN) announced today that it intends to sell up to 60 million
newly-issued shares of its common stock. In addition, Calpine expects to
grant an over-allotment option to the underwriters for an additional 9 million
shares of its common stock, which may be exercised for up to 30 days.
A registration statement relating to the common stock and other securities
has been filed with the Securities and Exchange Commission, and was declared
effective on April 10, 2002. The net proceeds of the sale are expected to be
used to repay debt and for general corporate purposes.
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.
The company also announced that it expects fully diluted earnings per
share for the quarter ended March 31, 2002 will be approximately $0.10 per
share, before deduction of non-recurring equipment cancellation costs of
approximately $168.5 million, or $0.35 per share and before extraordinary
items. After equipment cancellation costs and before extraordinary items, the
company expects a net loss for the quarter of approximately $0.25 per fully
diluted share. The company also stated that it estimates fully diluted
earnings per share before non-recurring equipment cancellation costs and
extraordinary items for the year ending December 31, 2002 will be
approximately $1.50 to $1.60 per fully diluted share, which includes dilution
from the above-mentioned equity offering.
Calpine's current year-end estimate reflects continued uncertainty over
the timing of a domestic economic recovery and a return to more normal
weather, and a gradual improvement in pricing. The company continues to
evaluate the North American power market and intends to refine its year-end
outlook when market and other conditions provide greater visibility into
2002 results. |
