Calpine Canada Energy Finance ULC announces Calpine Canada Resources Company has completed the sale of ULC1 senior notes



    /NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES
    NEWSWIRE SERVICES/

    CALGARY, Aug. 14 /CNW/ - Calpine Canada Energy Finance ULC ("ULC1")
announces that its affiliate Calpine Canada Resources Company ("CCRC") today
has closed the offering of its holdings of US$359,770,000 of 8 1/2% Senior
Notes due 2008 issued by ULC1 and guaranteed by Calpine Corporation (the "CCRC
ULCl Notes"). The CCRC ULC1 Notes were sold to Lehman Brothers Inc., as
initial purchaser, and then immediately resold by Lehman Brothers to eligible
purchasers pursuant to certain exemptions available under applicable
securities laws.
    The sale of the CCRC ULC1 Notes and the entering into the agreement to
sell the CCRC ULC1 Notes was made pursuant to an order (the "Sale Order") from
the Court of Queen's Bench of Alberta in the Judicial District of Calgary (the
"Court").
    Copies of the Sale Order and other orders, the applications filed in
connection with these orders and further information concerning the
proceedings under the Companies' Creditors Arrangement Act (Canada), ULC1,
CCRC, the ULC1 Notes, the proceedings to date with respect to the CCRC ULC1
Notes and the sale thereof, and copies of reports filed by the Court appointed
Monitor are available at (http://www.ey.com/ca/calpinecanada).

    ULC1 is an indirect wholly-owned subsidiary of Calpine Corporation and
was established as a special purpose finance subsidiary of Calpine Corporation
whose primary business is to engage in financing activities to raise funds for
the business operations of Calpine Corporation and its subsidiaries. Calpine
Corporation is a major power company that supplies customers and communities
with electricity from clean, efficient, natural gas-fired and geothermal power
plants.
    Calpine Corporation owns, leases and operates integrated systems of
plants throughout North America. Calpine Corporation was founded in 1984.

    THE SECURITIES OFFERED HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER
THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES
LAWS, AND EXCEPT PURSUANT TO AN APPLICABLE EXEMPTION FROM REGISTRATION
REQUIREMENTS, MAY NOT BE OFFERED, SOLD OR DELIVERED, DIRECTLY OR INDIRECTLY,
IN THE UNITED STATES OF AMERICA OR ITS TERRITORIES OR POSSESSIONS OR TO OR FOR
THE ACCOUNT OR BENEFIT OF ANY U.S. PERSON. THIS PRESS RELEASE DOES NOT
CONSTITUTE AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY ANY OF THE
SECURITIES NOR SHALL THERE BE ANY SALE OF THE SECURITIES IN ANY STATE IN WHICH
SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL.

    This press release may contain forward-looking statements within the
meaning of applicable securities legislation. Any statements that express or
involve discussions with respect to ULC1's expectations, beliefs, intentions,
future events or performance (often using words such as "believes", "expects",
"anticipates" or "intends" or stating that certain actions, events or results
"may", "could", "would", "might" or "will" be taken or achieved) are not
statements of historical fact, but are forward-looking statements. Such
forward-looking statements, by their nature, necessarily involve known and
unknown risks, uncertainties and other factors beyond ULC1's ability to
control or predict, that may cause ULC1 actual results, performance or
achievements to differ materially from the anticipated results, performance or
achievements expressed or implied by such forward-looking statements.
Investors and others should not place undue reliance on these forward-looking
statements as actual results could differ materially from the forward-looking
statements in this press release based on risks associated with: the guarantee
of the CCRC ULC1 Notes by Calpine Corporation; any forward-looking information
contained in reports of the Monitor; and other factors over which ULC1 has no
control, including the risks detailed from time to time in the documents filed
by ULC1 with securities regulators. ULC1 does not have control of the timing,
process or outcome of the appeal of the Sale Order or any other orders.
Calpine Corporation is a debtor in proceedings pending before the United
States Bankruptcy Court for the Southern District of New York under Title 11
of Chapter 11 of the United States Code. The Monitor reports are prepared by
Ernst & Young Inc. in conjunction with its duties as Court-appointed monitor,
and not by ULC1. ULC1 does not undertake or assume any obligation to publicly
update or revise any forward-looking statement, whether as a result of new
information, future events or any other reason.





For further information:

For further information: Toby Austin by e-mail at:
toby.austin@calpine.com, or by telephone at (403) 296-1411

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Calpine Canada Energy Finance ULC

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