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Calpine replacement DIP facility approval draws three appeals
By Caroline Salls
Pittsburgh, March 14 - Approval of Calpine Corp.'s $5 billion replacement debtor-in-possession financing drew three appeals Wednesday, according to filings with the U.S. Bankruptcy Court for the Southern District of New York.
The order was appealed by HSBC Bank USA, NA, which is the indenture trustee for the second-priority secured floating-rate notes due 2010 issued by Calpine Generating Co., LLC and CalGen Finance Corp.; the Bank of New York, which is the administrative agent for Calpine Generating's second-priority secured institutional term loans due 2010; and third-priority indenture trustee Manufacturers & Traders Trust Co.
As previously reported, the replacement DIP facility consists of a $4 billion secured first-priority term loan and a $1 billion secured first-priority revolving credit facility, including a $550 million letter-of-credit subfacility.
Maturity is the earlier of the effective date of a plan of reorganization or the second anniversary of the DIP closing date.
Calpine can expand the facilities by up to $2 billion to refinance secured project debt or project preferred securities.
Amortization is 1% per year on the term loan, payable quarterly.
Interest will be based on the ratings of the replacement DIP facility.
For ratings of Ba3/BB- with stable outlooks, interest will be Libor plus 200 basis points; for ratings of B1/B+ with stable outlooks, interest will be Libor plus 225 bps; for ratings of B2/B with stable outlooks, interest will be Libor plus 275 bps; and for ratings of B3/B- or lower, interest will be Libor plus 325 bps.
Calpine, a San Jose, Calif., power company, filed for bankruptcy on Dec. 20, 2005. Its Chapter 11 case number is 05- 60200.
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