Calpine to Sell Domestic Oil, Gas Units for $1B
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Calpine Corp. (CPN), a leading independent power producer and marketer, on Wednesday said it plans to sell all of its domestic oil and gas exploration and production assets for $1.05 billion.
Under terms of the sale, Calpine has formed a new subsidiary, Rosetta Resources Inc. (search) , that is selling 45.3 million shares for $725 million in private placement. Rosetta will use proceeds from the sale, plus $325 million in proceeds from a new credit facility, to buy all of Calpine's domestic oil and gas exploration and production assets.
The investor or investors acquiring the Rosetta shares were not named in Calpine's statement.
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Once the deal is complete, Calpine will no longer own any interest in Rosetta, it said. The sale is scheduled to close on July 7.
Calpine shares rose 5 cents, or 1.4 percent, to $3.65 on the New York Stock Exchange (search).