Calpine Corp. said on Wednesday that it plans to sell all of its domestic oil and gas exploration and production assets for $1.05 billion.
Under terms of the sale, the independent power producer and marketer has formed a new subsidiary, Rosetta Resources Inc., 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.
