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Calpine Raises Capital To Ease Investors Concerns

Calpine says it´s raised an additional 200 million dollars as part of the power generator´s efforts to reassure investors about its financial strength.

The San Jose based company raised the money in a private placement of convertible notes. The notes carry the same terms as the securities sold in a one billion dollar placement last month.

Calpine´s shares fell 84 cents to 15.99 today during trading on the New York Stock Exchange.

The flurry of investment activity comes amid heightened uncertainty about Calpine´s ability to complete an expansion program following the collapse of Enron.

Calpine´s shares plummeted in the aftermath of Enron´s bankruptcy filing last month, and Moody´s Investor Services lowered Calpine´s credit rating to junk status.