Caithness Coso Funding Corp. Announces Extensions to its Price Determination Date and Expiration Time of the Tender Offers for its 6.263% Subordinated Secured Notes Due 2014 and its 5.489% Senior Secured Bonds Due 2019

Oct 11, 2007, 01:00 ET from Caithness Coso Funding Corp.

    NEW YORK, Oct. 11 /PRNewswire/ -- In connection with Caithness Coso
 Funding Corp.'s (the "Company") previously announced tender offers and
 consent solicitations for its $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 Company announced today 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 11, 2007
 to 2:00 p.m. New York City time on October 25, 2007 and that it has also
 extended the date the tender offer is scheduled to expire (the "Expiration
 Time") from 9:00 a.m. New York City time on October 25, 2007 to 9:00 a.m.
 New York City time on November 1, 2007 (the "New Expiration Time"). Each of
 the Price Determination Date and the Expiration Time may be further
 extended by the Company. 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 previously announced on October 1, 2007, that it had
 received, pursuant to its previously announced tender offers and consent
 solicitations for any and all of its outstanding 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 a one hundred percent (100%) direct ownership interest in certain
 affiliates of the Company (the "Acquisitions") as described in the Offer
     The Company announced today that as of 5:00 p.m., New York City time,
 on October 10, 2007: the following principal amount of Notes had been
 validly tendered and not withdrawn: $90,000,000 million original principal
 amount of the 2014 Notes (representing 100% of the outstanding original
 principal amount of such Notes) and $355,000,000 million original principal
 amount of the 2019 Bonds (representing 94.67% of the outstanding original
 principal amount of such Bonds). The Company and the trustee have executed
 supplemental indentures giving effect to the proposed amendments and the
 proposed waivers. 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
     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
     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
     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.