Calpine unit to sell 20-year notes, enter up to $740 million of loans

By Sarah Lizee

Olympia, Wash., Oct. 17 – Calpine Corp. subsidiary Geysers Power Co., LLC intends to offer series A senior secured notes due 2039 and series B senior secured notes due 2039 in a private placement, according to a press release.

The series B notes will be fully amortizing according to a fixed sculpted amortization schedule.

The company also intends to enter into a new seven-year senior secured revolving credit facility and a new 10-year senior secured term loan facility in an estimated amount of up to $320 million and $400 million, respectively.

Geysers will use proceeds from the new notes and facilities to fund a debt service reserve account and a major maintenance reserve account, pay costs associated with the offerings and entry into the new loans, pay a dividend to Calpine and fund working capital, ongoing capital requirements and general corporate purposes.

Calpine is a Houston-based generator of electricity from natural gas and geothermal resources.

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