Caithness Coso Funding Corp. Announces Receipt of Requisite Consents in Consent Solicitation for Its 6.263% Subordinated Secured Notes due 2014 and Its 5.489% Senior Secured Bonds due 2019 and Amendments and Extensions to Its Tender Offer for the Notes

    NEW YORK, Oct. 1 /PRNewswire/ -- Caithness Coso Funding Corp. (the
 "Company") announced today that it had received, pursuant to its previously
 announced tender offers and consent solicitations for any and all of its
 outstanding $90,000,000 original principal amount of 6.263% Subordinated
 Secured Notes due 2014 (CUSIP Nos. 128017AK6 and U12295AD0) (the "2014
 Notes") and its $375,000,000 original principal amount of 5.489% Senior
 Secured Bonds due 2019 (CUSIP Nos. 128017AG5 and U12295AC2) (the "2019
 Bonds" and, together with the 2014 Notes, the "Notes"), the requisite
 consents to adopt the proposed amendments and the proposed waivers to the
 Notes and the indentures governing the Notes, all as described in the
 Company's Offer to Purchase and Consent Solicitation Statement, dated
 September 18, 2007, and the accompanying Consent and Letter of Transmittal
 (together, the "Offer Documents"). The tender offers and related consent
 solicitations are being conducted in connection with the previously
 announced agreement (the "Purchase Agreement") between Caithness Energy,
 L.L.C. ("Caithness Energy"), certain owners of Caithness Energy, certain
 subsidiaries of Caithness Energy and ArcLight Renewco Holdings, LLC
 ("Renewco"), dated July 9, 2007, pursuant to which Renewco has agreed to
 acquire (the "Acquisitions") a one hundred percent (100%) direct ownership
 interest in certain affiliates of the Company as described in the Offer
 Documents.
     The Company announced that consents had been delivered in respect of
 the following principal amounts of Notes, which Notes had been validly
 tendered and not withdrawn as of 5:00 p.m., New York City time, on October
 1, 2007 (the "Consent Time"): $90,000,000 million original principal amount
 of the 2014 Notes (representing 100% of the outstanding original principal
 amount of such Notes) and $354,824,000 million original principal amount of
 the 2019 Bonds (representing 94.62% of the outstanding original principal
 amount of such Bonds). The Company and the trustee expect to enter into
 supplemental indentures giving effect to the proposed amendments and the
 proposed waivers shortly. Such supplemental indentures and waivers will
 only become operative, however, concurrently with the Acquisitions,
 provided that all validly tendered Notes are accepted for purchase pursuant
 to the tender offers.
     In addition, the Company announced that all holders whose Notes are
 validly tendered (and not withdrawn) at or prior to the Expiration Time (as
 defined below) will be eligible to receive the total consideration offered
 pursuant to the tender offers and consent solicitations. Accordingly, all
 holders whose Notes are validly tendered (and not withdrawn) at or prior to
 the Expiration Time (as defined below) - including Notes validly tendered
 after the Consent Time - will be eligible to receive the consent payment of
 $20.00 per $1,000 principal amount of Notes included in the total
 consideration, multiplied by the applicable scaling factor, offered
 pursuant to the tender offers and consent solicitations.
     The Company also announced that it has extended the date on which the
 pricing for the Notes will be established (the "Price Determination Date")
 from 2:00 p.m. New York City time on October 1, 2007 to 2:00 p.m. New York
 City time on October 11, 2007 and that it has also extended the date the
 tender offer is scheduled to expire (the "Expiration Time") from 12:00
 midnight New York City time on October 16, 2007 to 9:00 a.m. New York City
 time on October 25, 2007 (the "New Expiration Time"). Each of the Price
 Determination Date and the Expiration Time may be further extended by the
 Company. Rights to withdraw tendered Notes and to revoke delivered consents
 terminated at the Consent Time.
     The tender offers remain open and are scheduled to expire at the New
 Expiration Time, unless extended or earlier terminated. The tender offers
 are subject to the satisfaction of certain conditions, including the
 receipt of specified financing, the consummation of the Acquisitions and
 certain other customary conditions.
     The Company has retained Citi to act as sole Dealer Manager for the
 tender offers and as the Solicitation Agent for the consent solicitations.
 Citi can be contacted at (212) 723-6106 (collect) or at (800) 558-3745
 (toll free). Global Bondholder Services Corporation is the Information
 Agent and Depositary for the tender offers and can be contacted at (212)
 430-3774 (collect) or at (866) 470-4200 (toll free). Copies of the Offer
 Documents and other related documents may be obtained from the Information
 Agent.
     The tender offers and consent solicitations are being made solely on
 the terms and conditions set forth in the Offer Documents. Under no
 circumstances shall this press release constitute an offer to buy or the
 solicitation of an offer to sell any securities of the Company. This press
 release is for informational purposes only and is not a solicitation of
 consents to the proposed amendments and waivers to the indentures. The
 tender offers and consent solicitations are not being made to holders of
 Notes in any jurisdiction in which the making or acceptance thereof would
 not be in compliance with the securities, blue sky or other laws of such
 jurisdiction.
     None of the Company, Renewco, the Dealer Manager, the Information Agent
 or the Depositary makes any recommendation as to whether holders of the
 Notes should tender their Notes or consent to the proposed amendments and
 waivers to the indentures and no one has been authorized by any of them to
 make such recommendations. Holders must make their own decisions as to
 whether to consent to the proposed amendments and waivers to the indentures
 and to tender the Notes.
     Caithness Coso Funding Corp.
     Caithness Coso Funding Corp. is a single-purpose Delaware corporation
 formed to finance the business and operations of Coso Finance Partners, a
 California general partnership ("Navy I Partnership"), Coso Energy
 Developers, a California General Partnership ("BLM Partnership"), and Coso
 Power Developers, a California General Partnership ("Navy II Partnership,
 and together with Navy I Partnership and BLM Partnership, the
 "Partnerships"). The Company has no material assets, other than the loans
 it has made and will make to the Partnerships and certain accounts created
 in connection with the offering of the Notes, and does not conduct any
 business, other than issuing the Notes and making the loans to the
 Partnerships, and activities directly related thereto.
     Forward-Looking Statements
     This press release contains forward-looking statements based on current
 Company management expectations. Those forward-looking statements include
 all statements other than those made solely with respect to historical
 fact. Numerous risks, uncertainties and other factors may cause actual
 results to differ materially from those expressed in any forward-looking
 statements. These factors include, but are not limited to: (1) risks
 relating to the uncertainties in the California energy market, (2) the
 financial viability of Southern California Edison, (3) risks related to the
 operation of geothermal power plants, (4) the impact of avoided cost
 pricing along with other pricing variables, (5) general operating risks,
 including resource availability and regulatory oversight, (6) changes in
 government regulation, (7) the effects of competition, (8) consummation of
 the tender offers, the consent solicitations and the Acquisitions, (9) the
 occurrence of any event, change or other circumstance that could give rise
 to the termination of the Purchase Agreement, which sets forth the terms of
 the Acquisitions, (10) the outcome of any legal proceedings that may be
 instituted against the Company and others relating to the Purchase
 Agreement, (11) the inability to complete the proposed Acquisitions due to
 the failure to obtain certain governmental approvals or the failure to
 satisfy other conditions to consummate the proposed Acquisitions, the
 tender offers or the consent solicitations, (12) risks that the proposed
 Acquisitions disrupt current plans and operations and the potential
 difficulties in employee retention as a result of the proposed
 Acquisitions, and (13) the amount of the costs, fees, expenses and charges
 related to the proposed Acquisitions. Many of the factors that will
 determine the outcome of the subject matter of this press release are
 beyond the Company's ability to control or predict. The Company undertakes
 no obligation to revise or update any forward-looking statements, or to
 make any other forward-looking statements, whether as a result of new
 information, future events or otherwise.
 
 

SOURCE Caithness Coso Funding Corp.

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