Calpine reaches agreement with lenders on $950 million two-year revolver

By Sara Rosenberg

New York, June 23 - Negotiations have finally come to a close, as Calpine Corp. announced on Monday that it reached an agreement with its bank group on a term sheet for a new $950 million two-year secured working capital revolver.

Under the agreement, the San Jose, Calif. power company received an automatic extension of the current maturity date for its existing $950 million revolver to July 16 in order to provide enough time to complete definitive documentation.

"We greatly appreciate the efforts of our bank group in structuring this new, two-year, secured working capital revolver," stated Bob Kelly, chief financial officer, in a news release. "This refinancing is a significant advancement in Calpine's program to enhance our liquidity and financial strength. Calpine continues to make progress towards the completion of other refinancing opportunities, and we are advancing our $2.3 billion liquidity program through several additional liquidity-enhancing transactions."

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