Calpine Construction Finance terminates 9¾% notes tender offer

By Jennifer Chiou

New York, Aug. 3 - Calpine Construction Finance Co. LP said it terminated its previously announced offer to purchase for cash a portion of its 9¾% second-priority senior secured floating-rate notes due 2011.

As already reported, the offer was conditioned upon the company's receipt of proceeds from the proposed sale of its Ontelanuee Energy Center by the purchase date for the notes, which was to be no later than the third business day following the Aug. 3 expiration date.

Investors who tendered their notes will have them returned.

The company announced the offer on July 7, stating it anticipated $225 million in proceeds from the Ontelanuee sale and that it was first obligated to repay $379.2 million outstanding under its term loans before buying back any convertibles.

The price on offer had been par plus accrued interest.

Power plant owner and operator Calpine Construction Finance is an indirect wholly owned subsidiary of San Jose, Calif.-based Calpine Corp.

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