"Where are you taking me?""No, Jack, it's where you have taken us." Remember that scene in Patriot Games? The one where Harrison Ford's Jack Ryan character is being led into a room to watch a satellite feed of a commando raid on a terrorist camp that he initiated? (The 1992 film was eerily and sadly prescient in many ways.) I kept thinking about that scene this week as market forces led me to view the "battles" being waged in a few individual names.
Following the MoneyRegarding the more pressing issue of the status of a $1 billion credit facility Calpine is negotiating with its lenders, the firm's spokesman said Wednesday evening: "We're still talking with the banks and are still confident we're going to close it." He said what may have caused rumors to the contrary was the company's disclosure in Wednesday's amended 10-Q that:
In the last quarter of 2001 and early 2002, we have raised nearly $5 billion of capital ... and an additional $1 billion unsecured working capital credit facility, which was recently announced and is expected to close in the first quarter of 2002." (Italics added.)The company had previously said it expected the facility to close in mid-January, and the spokesman acknowledged that the "in the first quarter" comment may have caused concern, not to mention Calpine's 7% drop on Wednesday. Late Thursday, Calpine Chairman and CEO Peter Cartwright said he hopes the facility will close within a week. "We will all be watching carefully to make sure that does in fact close," said the analyst. "If Calpine is going to be able to raise debt and maintain liquidity, there's a potential the stock could double in 12 months." If it can't, Calpine could find itself another victim of the ongoing war over the credibility of corporate America.