Tuesday, November 22, 2005

Neither A Lender Or Borrower Be

This sort of squabble creeps me out, mostly because Calpine has indirectly paid a substantial chunk of my salary over the years, and I don't want that gravy train to end soon. But then, why should I give Calpine any advice? I'm seriously leveraged myself, and I know I try to avoid paying that 'speculative premium' whenever possible!
Calpine used $139 million in sale proceeds to buy back some of its top-priority debt at face value of the notes, but other bondholders refused to sell at that price. Calpine, which claims some bondholders want a "speculative premium," then withdrew more than $300 million from the account to buy natural gas in storage, a move that angered some bondholders.

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