Calpine upsizes term loan to $835 million, firms discount at 99½

By Sara Rosenberg

New York, Sept. 28 - Calpine Corp. increased the size of its seven-year senior secured term loan (B1) to $835 million from $615 million and set the original issue discount at 991/2, the tight end of the 99 to 99½ talk, according to a market source.

Pricing on the loan was left at Libor plus 325 basis points with a 1.25% Libor floor, and there is still 101 soft call protection for one year.

Commitments were due at noon ET on Friday.

Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc. and RBC Capital Markets LLC are the joint lead arrangers and bookrunners on the deal.

Proceeds will be used to redeem 10% of each series of the company's existing notes at 103 plus accrued interest and, as a result of the upsizing, to repay project level term loans at Broad River/South Point, the source added.

Calpine is a Houston-based power company.

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