Calpine Construction talks $1 billion term loan at Libor plus 250 bps

By Sara Rosenberg

New York, Dec. 4 – Calpine Construction Finance Corp. was scheduled to hold a lender call at 3 p.m. ET on Monday to launch a $1 billion covenant-light first-lien term loan due January 2025 that is talked at Libor plus 250 basis points with a 0% Libor floor and an original issue discount of 99.5 to 99.75, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., MUFG, Barclays, Goldman Sachs Bank USA, Credit Agricole, RBC Capital Market, BNP Paribas Securities Corp. and UBS Investment Bank are the leads on the deal. SMBC and ING are co-managers.

Commitments are due at noon ET on Friday, the source added.

Proceeds will be used to refinance existing term loan B-1 and term loan B-2 debt.

Also, parent company Houston-based Calpine Corp., is issuing $560 million of add-on senior secured notes, upsized from $550 million, to refinance a portion of Calpine Construction’s term loans.

Calpine Construction is an owner and operator of 4.4 GW of power generation capacity.

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