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.”