NEW YORK (Standard&Poor's) Feb. 1, 2005--Standard&Poor's Ratings Services said today that it views Calpine Corp.'s (B/Negative/--) $260 million offering of redeemable preferred shares (unrated) in Calpine European Funding (Jersey) Ltd. as favorable for the company's credit quality. The offering adds near-term liquidity to Calpine's balance sheet in anticipation of a potential sale of the 1,200 MW Saltend Energy Centre. The redeemable preferred shares, due on July 30, 2005, were priced at U.S. LIBOR plus 850 basis points, and offered at 99% of par The proceeds from the offering will initially be loaned to a holding company, which indirectly owns Calpine's Saltend cogeneration power plant. The net proceeds will ultimately be used as permitted by Calpine's existing
