Calpine bank negotiations focusing on length of revolver maturity extension

By Sara Rosenberg

New York, May 13 - Calpine Corp. is currently involved in final discussions with its bank group regarding the refinancing of its $400 million and $600 million revolving working capital facilities, with the main focus of the negotiations revolving around how long the extension would be, company officials said in a conference call Tuesday.

Furthermore, the San Jose, Calif. power company is working on two bank loans for project financings of $200 to $250 million each, one for the Riverside Energy Center in Wisconsin and one for the Rocky Mountain Energy Center in Colorado. Riverside is expected to close this quarter and Rocky Mountain will close shortly after, however, the closing may slip into July, according to officials.

"We continue to work with our bank group on a two-year extension to our $1 billion bank revolver that currently matures May 24," company officials said. "And, we are working towards getting everything completed by that date.

"The whole crux has been between whether it's a two year extension or a one year extension and right now we're optimistic on the two year extension," officials said.

When asked whether the bank lending group was concerned with the company's convertibles being putable within the next two years, officials opted not to discuss the bank negotiations in detail.

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