Calpine Corporation closes on a $1.6 billion first lien term loan

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Calpine Corporation closes on a $1.6 billion first lien term loan

Calpine Corporation, America’s largest generator of electricity from natural gas and geothermal resources, has recently announced that it has closed on a $1.6 billion first lien term loan.

The Term Loan, which amortizes at a rate of 1% per year, bears interest at LIBOR plus 2.75% per annum (subject to a LIBOR floor of 0.75%) and matures in 2022.

Calpine utilized the proceeds of the Term Loan to retire approximately $1.6 billion remaining on its 2018 first lien term loan which bore interest at a rate of LIBOR plus 3% per annum (subject to a LIBOR floor of 1%).

Stacey Peterson, Calpine’s Treasurer and Vice President, Finance, said:

“This refinancing demonstrates our continued ability to opportunistically access the capital markets to execute on value-enhancing opportunities. As a result of this transaction, we have reduced our annual interest expense and extended our debt maturity profile by four years.”

Morgan Stanley, Goldman Sachs, Mitsubishi, Barclays and RBC acted as lead arrangers on the transaction.

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