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Calpine $2 billion DIP expected as January/early-February business
By Sara Rosenberg
New York, Jan. 3 - Calpine Corp. is expected to hold a bank meeting either this month or early next month to launch its proposed $2 billion secured two-year debtor-in-possession financing facility, according to a market source.
Deutsche Bank and Credit Suisse First Boston are joint lead arrangers and joint bookrunners on the deal.
The DIP consists of a $1 billion revolver talked at Libor plus 225 basis points, a $650 million term loan talked at Libor plus 225 bps and a $350 million second-priority term loan talked at Libor plus 450 bps.
The San Jose, Calif., power company has already received court approval for the use of up to $500 million of the DIP. A final DIP hearing is scheduled for Jan. 25.
Proceeds from the DIP, combined with cash from operations, will be used to fund post-bankruptcy operating expenses, including employee and supplier obligations.
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