NEW YORK, Nov. 1, 2001 Tyco Capital and Calpine Corporation today announced the completion of a $800 million leverage lease financing transaction for three new, natural gas-fired power plants. The financing will provide Calpine with a 36-year term lease.
Tyco Capital's Structured Finance group provided the lease equity, totaling $145 million, for the three plants, located in Arizona, South Carolina and Wisconsin. The South Point plant in Arizona is 560 megawatts (MWs), the Broad River Plant in South Carolina is 850 MWs, and the RockGen plant in Wisconsin is 520 MWs for a total of 1930 MWs. The South Point plant, which is the first leveraged lease financing of a power plant on Native American lands, is a combined cycle plant, while both Broad River and RockGen are simple cycle peaking plants. The leveraged lease debt is being financed in the 144a market.
"Calpine's new plant construction program, which is running with a 100 percent success rate, is unprecedented in its size and scope," said Guy Piazza, Managing Director of Structured Finance's Project Finance unit. "This structured transaction highlights our ability to optimize our financial engineering capabilities and balance sheet strength to deliver the highest financial objectives for our client."
"Tyco Capital has been an excellent financing partner for us and has been able to provide the expertise, financial strength and capital Calpine needed to complete this transaction," said Bob Kelly, President of Calpine Finance Company. "Tyco Capital understands our industry and its ability to underwrite transactions on an accelerated basis has been the key to our partnership."
Calpine's strategy is to be the lowest cost power producer in every market in which they compete. Geographic diversification and 'system power' have been focal points of that strategy and these plants represent a geographically diverse pool of modern, efficient and environmentally friendly electric power generation facilities that will help meet energy needs in the United States for many years to come.
"We understand the power industry," said Dan Morash, Global Head of Project Finance. "We have financed all of Calpine's geothermal facilities, as well as many of their natural gas fired plants. In other areas, we have financed coal, pumped storage hydro, district energy plants and wind power. In energy and power, Tyco Capital is building a considerable presence in North America and Europe."
About Tyco Capital
The Tyco Capital family of companies are subsidiaries of Tyco International Ltd. Tyco Capital is a , global source of financing and leasing capital and advisor for companies in more than 30 industries. Managing more than $50 billion in assets across a diversified portfolio, Tyco Capital, formerly known as CIT, empowers many of today's industry leaders and emerging businesses offering vendor, equipment, factoring, consumer, and structured financing capabilities. Tyco Capital operates in the United States and Canada with strategic locations in Europe, Latin and South America, and the Pacific Rim.
About Tyco International Ltd.
Tyco International Ltd. is a diversified manufacturing and service company.
About Calpine Corporation
Based in San Jose, Calif., Calpine Corporation provides customers with reliable and competitively priced electricity. For more information about Calpine, visit its web site at www.calpine.com.