Calpine refinances loan with new $1 billion five-year senior revolver

By Susanna Moon

Chicago, Dec. 10 - Calpine Corp. said it replaced its senior secured revolving facility with a new $1 billion senior secured revolver due Dec. 10, 2015, which closed Friday.

Any drawdowns will bear interest at Libor plus 300 basis points or 325 bps, based on a leverage-based pricing grid.

Proceeds will be used for working capital and other general corporate purposes.

Goldman Sachs Bank USA was the bookrunner. Goldman Sachs Bank USA, Barclays Capital, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding, Inc., RBC Capital Markets, LLC, RBS Securities Inc., UBS Securities LLC; Merrill Lynch, Pierce, Fenner & Smith Inc., ING Capital LLC and Union Bank NA are the joint lead arrangers.

"This revolver refinancing is another important step in achieving our finance plan to term out our obligations with covenant packages that give us far greater flexibility to take advantage of a full spectrum of capital allocation options," Zamir Rauf, Calpine's chief financial officer, said in a press release.

Calpine had said on Oct. 29 that it was considering refinancing its existing $1 billion first-lien revolver with one that has a more flexible covenant package.

Calpine is a Houston-based power generation company.

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