Calpine to sell plants, trim $3-bil in debt by end of 2005

Calpine to sell plants, trim $3-bil in debt by end of 2005

Washington (Platts)--25May2005


Calpine on Wednesday said it plans an aggressive move to improve its balance
sheet by selling certain power and gas assets and cutting debt by more than
$3-bil by the end of the year. The move would produce annual interest savings
of $275-mil and trim operating costs by $200-mil, the San Jose,
California-based company said. 

Calpine also is considering temporarily shutting down certain plants with
negative cash flow until market conditions improve. Calpine previously said
it's reviewing strategic alternatives for its oil and natural gas assets,
including the possible sale of all or a portion of those resources, and it is
reviewing final bids on its 1,200-MW Saltend power plant in the UK. "The
company is also evaluating the sale of up to eight other power plants to
capture stronger market valuations," Calpine said in a statement. 

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