Calpine draws $725 million on revolver

New York, Oct. 1 - Calpine Corp. said it drew down $725 million under its $1 billion senior secured revolving facility due March 29, 2014.

"This draw is a proactive financial decision to preserve our liquidity by increasing our cash position during this period of uncertainty in the capital markets," said Zamir Rauf, interim executive vice president and chief financial officer of Calpine, in a news release.

"This draw is not being made to satisfy any near-term needs but to enhance the quality of our liquidity."

Following the borrowing, Calpine will have $1.265 billion of liquidity, including $1.25 billion of cash and $15 million of revolver and letter of credit availability. Calpine also has $350 million of contingent liquidity from its knock-in and contingent commodity revolver facilities.

The revolver is part of the Houston and San Jose, Calif.-based power company's exit facility.

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