Calpine seeks waivers for secured notes, term loans

New York, June 6 - Calpine Construction Finance Co., LP and CCFC Finance Corp. announced a consent solicitation for their $415 million of second priority senior secured floating rate notes due 2011 and Calpine Construction Finance said it is also seeking a similar waiver for the lenders for its $385 million first priority senior secured institutional term loans due 2009.

The waivers would cover certain existing defaults and events of default under the indenture and credit agreement that occurred following Calpine Corp.'s Chapter 11 bankruptcy filing on Dec. 20, 2005.

The defaults and events of default resulted from the failure of Calpine Energy Services, LP, one of Calpine Corp.'s controlled subsidiaries that filed for bankruptcy, to make a portion of the payments due to Calpine Construction Finance in March under a gas sale and power purchase agreement and to cure the defaults within the applicable cure period, and the failure of Calpine Construction Finance to deliver on time financial reports required by the note indenture and the credit agreement.

For the notes, Calpine Construction Finance needs consents for a majority of the notes while for the credit agreement it needs the consent of lenders holding more than 50% of the loans.

The consent solicitation and waiver request end at 5 p.m. ET on June 9.

Global Bondholder Services Corp. is information agent (866 736-2200).

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