Calpine gets $230 million financing for Riverside Energy Center project

By Sara Rosenberg

New York, Aug. 25 - Calpine Corp. obtained $230 million of non-recourse financing from a group of banks, including Credit Lyonnais, Co-Bank, Bayerische Landesbank, HypoVereinsbank and NordLB for its 600-megawatt Riverside Energy Center. Furthermore, this financing will eventually be replaced by a term loan once the energy center is operational.

The non-recourse financing carries an interest rate of Libor plus 250 basis points.

Once commercial operation of the Riverside Energy Center begins, the banks will provide Calpine with a three-year term-loan facility, which will initially be priced at Libor plus 275 basis points.

"Modern, state-of-the-art electric generating facilities like the Riverside Energy Center with contracts for baseload operations provide excellent opportunities to access the project finance market," stated Bob Kelly, chief financial officer, in a news release. "We appreciate the support of these core commercial banks and look forward to working with them on future transactions. With the completion of this financing, Calpine has completed or announced nearly $2 billion towards our 2003 liquidity program."

Calpine is a San Jose, Calif. power company.

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