Calpine to redeem High Tides with convertible proceeds, buy back $266 million convertibles

Pittsburgh, Sept. 23 - Calpine Corp. will use proceeds from its offering of $600 million of unsecured convertible notes due 2014 to redeem its remaining $198.5 million of its 5¾% High Tides I preferred securities and the remaining $285 million of its 5½% High Tides II preferred securities, according to a company news release.

Calpine also plans to use cash on hand to buy back $266 million of its existing 4¾% unsecured convertible notes due 2023 from Deutsche Bank.

In addition, Calpine intends to enter into a 10-year share lending agreement with Deutsche Bank, as borrower, covering up to 89 million shares of Calpine's common stock, the release said.

Calpine will use remaining proceeds from the new convertible offering to redeem or buy back other existing debt through open-market purchases.

Calpine is a San Jose, Calif., power company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.