Posted on 01/14/2005 9:37:01 AM PST by MeneMeneTekelUpharsin
Calpine Considers Strategic Alternatives, Including Possible Sale, for Saltend Energy Centre
SAN JOSE, Calif. (AP) -- Calpine Corp., an operator of natural gas-fired and geothermal power plants, said Thursday it is evaluating strategic alternatives -- including a possible sale -- for its Saltend Energy Centre power plant. The company has retained Credit Suisse First Boston to act as its adviser in this process.
Calpine purchased the 1,200-megawatt plant in Hull, England in late 2001 for about $800 million. The plant delivers steam and a portion of its electrical output to an adjacent chemical facility. The majority of the plant's output is sold to the British power market. Net proceeds from any sale of the plant would be used to redeem the company's $360 million, two-year redeemable preferred shares, with remaining proceeds to be used in accordance with bond provisions.
Calpine Corp. shares fell 5 cents to close at $3.42 on the New York Stock Exchange, then rose 1 cent to $3.43 in aftermarket trading.
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