Calpine finalizes $500 million term loan B-7 at Libor plus 300 bps

By Sara Rosenberg

New York, May 6 – Calpine Corp. set pricing on its $500 million seven-year covenant-light term loan B-7 (Ba2) at Libor plus 300 basis points, the wide end of the Libor plus 275 bps to 300 bps talk, according to a market source.

The term loan still has no Libor floor, an original issue discount of 99, 101 soft call protection for six months and amortization of 1% per annum.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, MUFG, Barclays, BNP Paribas Securities Corp., Credit Agricole, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding LLC, RBC Capital Markets and UBS Investment Bank are the joint lead arrangers on the deal.

Proceeds will be used to refinance a portion of the existing term loan B-3 due 2019.

Closing is expected on Tuesday.

Calpine is a Houston-based generator of electricity from natural gas and geothermal resources.

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