HCP Acquisition seeks $590 million credit facility

By Sara Rosenberg

New York, Feb. 6 - HCP Acquisition Inc. is currently in market with a $590 million credit facility, according to a market source.

Credit Suisse is the lead bank on the deal.

The facility, which launched with a conference call on Monday, consists of a $420 million (C$500 million) seven-year first-lien term loan with call protection against voluntary repayments of 101 for one year and a $170 million (C$200 million) eight-year second-lien term loan with call protection against voluntary repayments of 103 in year one, 102 in year two and 101 in year three, the source said.

Pricing on the deal is ratings dependent and will be set when ratings are released later in the week.

Commitments are due on Feb. 12.

Proceeds will be used to fund the acquisition of the outstanding units of the Calpine Power Income Fund and to acquire a 30% ownership interest in Calpine Power Fund LP held by Calpine Canada Power Ltd.

HCP Acquisition is a subsidiary of Harbinger Capital Partners.

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