Calpine to redeem two series of preferreds for $620 million with power plant sale

By Jennifer Chiou

New York, May 31 - A subsidiary of Calpine Corp. has agreed to the $925 million sale of its Saltend Energy Centre, whose proceeds will be used to redeem two existing series of redeemable preferred shares for $620 million.

The gross proceeds consist of a $906 million purchase price for the Hull, England, 1,200-megawatt plant and adjustments for working capital expected to be $19 million.

Credit Suisse First Boston acted as sale advisor for Calpine.

Calpine is selling the natural gas-fired, cogeneration power plant to a partnership between International Power plc and Mitsui & Co., Ltd., with an anticipated close of July 26.

"Calpine continues to focus on optimizing the value of our core North American power plant assets and strengthening our balance sheet. We acquired the Saltend power plant in August 2001 for $810 million. This transaction is an excellent opportunity for Calpine to capture significant value for our Saltend investment," said chief financial officer Bob Kelly.

Calpine Corp. is an electric power company based in San Jose, Calif.

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