Stocks & Investing
Stocks and Investing
Stocks and Investing
Mon, June 20, 2011
Sun, June 19, 2011
Fri, June 17, 2011 
HOUSTON--([ BUSINESS WIRE ])--Calpine Corp. (NYSE: CPN) announced today that it has closed on a $360 million first lien senior secured term loan (aTerm Loana). The Term Loan, which amortizes at a rate of 1% per year, bears interest at LIBOR plus 3.25% per annum (subject to a LIBOR floor of 1.25%) and matures in 2018.
Calpine utilized the proceeds of the Term Loan to retire credit agreements totaling $340.4 million belonging to its wholly owned subsidiaries Deer Park Energy Center, LLC, and Metcalf Energy Center, LLC.
aLike our previous project refinancing earlier this year, this new Term Loan simplifies our capital structure by bringing debt up to the corporate level. This flexible, investment grade-like covenant package enhances our ability to make optimal capital allocation decisions while eliminating the need for subsidiary-level reporting and unnecessary project cash traps,a said Todd Thornton, Calpinea™s Treasurer and Vice President, Finance.
The refinanced project debt pertains to two of Calpinea™s highly efficient, natural gas-fired, combined-cycle power plants. The Deer Park Energy Center in Deer Park, Texas, commenced commercial operations in June 2003, has the capacity to generate up to 1,001 megawatts of electricity and supplies steam to Shell Chemical L.P. The Metcalf Energy Center in San Jose, California, began commercial operations in June 2005 and has the capacity to deliver up to 605 megawatts of energy.
Morgan Stanley acted as lead arranger on the transaction.
About Calpine
Founded in 1984, Calpine Corporation is a major U.S. power company, currently capable of delivering approximately 28,000 megawatts of clean, cost-effective, reliable and fuel-efficient power from its 92 operating plants to customers and communities in 20 U.S. states and Canada. Calpine Corporation is committed to helping meet the needs of an economy that demands more and cleaner sources of electricity. Calpine owns, leases and operates primarily low-carbon, natural gas-fired and renewable geothermal power plants. Using advanced technologies, Calpine generates power in a reliable and environmentally responsible manner for the customers and communities it serves. Please visit our website at [ www.calpine.com ] for more information.
Forward-Looking Information
In addition to historical information, this release contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We use words such as abelieve,a aintend,a aexpect,a aanticipate,a aplan,a amay,a awill,a ashould,a aestimate,a apotential,a aprojecta and similar expressions to identify forward-looking statements. Such statements include, among others, those concerning expected financial performance and strategic and operational plans, as well as assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results to differ materially from those anticipated in the forward-looking statements. Please see the risks identified in this release or in Calpine's reports and registration statements filed with the Securities and Exchange Commission, including, without limitation, the risk factors identified in its Annual Report on Form 10-K for the year ended December 31, 2010, and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2011. These filings are available by visiting the Securities and Exchange Commission's web site at [ www.sec.gov ] or Calpine's web site at [ www.calpine.com ]. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and Calpine undertakes no obligation to update any such statements.
