Calpine unit gets $1.1 billion of climate bonds certified financing

By Sarah Lizee

Olympia, Wash., June 10 – Calpine Corp. closed $1.1 billion of climate bonds certified financing for its wholly owned subsidiary, Geysers Power Co., LLC, according to a press release.

The financing consists of a $900 million green senior secured term loan and a $200 million letter of credit facility.

The green loan will bear interest at Libor plus 200 basis points, increasing by 12.5 bps every three years, and matures in 2027.

Geysers Power intends to use the proceeds of the financing to repay Calpine for equity invested in Geysers Power, as well as to fund ongoing operations, maintenance and capital expenditures. Calpine intends to use its equity proceeds to repay corporate and project-level debt and for working capital and other general corporate purposes.

MUFG Bank, BNP Paribas, Credit Agricole, Natixis, Mizuho Bank, National Bank of Canada, Sumitomo Mitsui, SunTrust Robinson Humphrey, CoBank, Rabobank, ING Capital and DZ Bank acted as lead arrangers on the transaction. In addition, MUFG Bank acted as administrative agent and first-lien collateral agent, BNP Paribas acted as syndication agent, and Credit Agricole and Natixis acted as green loan coordinators.

Calpine is a Houston-based provider of power generation services.

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