Calpine starts tender for 4% convertibles

New York, Feb. 9 - Calpine Corp. said it has begun a cash tender offer for all its outstanding 4% convertible senior notes due Dec. 26, 2006.

The San Jose, Calif., power company is offering to pay par for the securities plus accrued interest up to but excluding the date of payment.

As of Feb. 6, Calpine had $483 million of the convertibles outstanding following repurchases of $652 million in the open market and privately negotiated transactions.

The tender runs through 5 p.m. ET on March 9.

The offer is not subject to any minimum amount of tenders.

Calpine said it is buying back the convertibles to reduce outstanding debt and interest expense.

It will fund the tender with proceeds from its recent offering of $900 million 4¾% contingent convertible notes due 2023 of which $508 million is still in escrow.

The dealer manager for the tender is Deutsche Bank Securities Inc. The information agent is MacKenzie Partners Inc. (800 322-2885 or 212 929-5500).

Full details at:

http://www.sec.gov/Archives/edgar/data/916457/000095012304001424/f96227exv99waw1wi.htm

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