Calpine cuts spread on $925 million term loan to SOFR plus 200 bps

By Sara Rosenberg

New York, Jan. 11 – Calpine Corp. reduced pricing on its $925 million seven-year senior secured covenant-lite term loan B-9 (Ba2/BB+/BB+) to SOFR plus 200 basis points from SOFR plus 225 bps, according to a market source.

Also, the original issue discount talk on the term loan was revised to a range of 99.5 to 99.75 from a range of 99.25 to 99.75, and then finalized at 99.75 after the noon ET recommitment deadline passed, the source said.

The term loan still has a 0% floor, 101 soft call protection for six months, amortization of 1% per annum, and a put option upon a change of control and a ratings event at 101%.

Citigroup Global Markets Inc., BofA Securities Inc., Barclays, BMO Capital Markets, BNP Paribas Securities Corp., Credit Agricole, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, JPMorgan Chase Bank, Mizuho, Morgan Stanley Senior Funding Inc., MUFG, Natixis, RBC Capital Markets, Santander and SMBC are the joint lead arrangers on the deal. Credit Suisse is the agent.

Proceeds will be used to refinance an existing secured term loan B-9 due April 2026 that is priced at SOFR plus 200 bps with a 0% Libor floor, and to pay related fees and expenses.

Closing is expected on Jan. 31.

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

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