Calpine launches repricing of $2.66 billion in term loans

By Sara Rosenberg

New York, Nov. 27 – Calpine Corp. was scheduled to hold a lender call at 3:30 p.m. ET on Monday to launch $2,659,000,000 in term loans (Ba2/BB), according to a market source.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and RBC Capital Markets are the leads on the deal.

The debt consists of a $1,564,000,000 term loan B-5 due January 2024, a $540 million term loan B-6 due January 2023 and a $555 million term loan B-7 due May 2023.

All of the tranches are talked at Libor plus 225 basis points to 250 bps with a 0% Libor floor and an original issue discount of 99.75 to par, the source said.

Included in all of the term loans is 101 soft call protection for six months.

Proceeds will be used to reprice an existing term loan B-5 down from Libor plus 275 bps with a 0.75% Libor floor, and existing term B-6 and term B-7 loans down from Libor plus 275 bps with a 0% Libor floor.

Commitments are due at noon ET on Thursday, the source added.

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

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