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Calpine closes first lien senior secured term loan of USD835m.

M2 EQUITYBITES-October 10, 2012-Calpine closes first lien senior secured term loan of USD835m(C)2012 M2 COMMUNICATIONS http://www.m2.com

US power producer, Calpine Corporation (NYSE:CPN) revealed on Tuesday that it has closed on an USD835m first lien senior secured term loan (Term Loan).

The company said that the Term Loan that bears interest at LIBOR plus an annual 3.25% that is subject to a LIBOR floor of 1.25%, amortises at a rate of 1% per year and matures in 2019.

Proceeds combined with cash on hand will refinance the currently callable part of each of its outstanding corporate-level senior secured notes together with about USD590m of principal, accrued interest, fees and call premiums and retire its project-level BRSP term loan facility that includes the repayment of about USD218m of principal as well as accrued interest and fees.

Additionally, the company said that its senior secured notes will mature between 2017 and 2023 and bear interest at fixed rates of between 7.25% and 8.00%, while the BRSP term loan secured by its Broad River and South Point Energy Centers and scheduled to mature in 2014 bearing interest at LIBOR plus 4.50% per annum (subject to a LIBOR floor of 3.00%), are now fully retired.

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Publication:M2 EquityBites (EQB)
Date:Oct 10, 2012
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