WASHINGTON (dpa-AFX) - Calpine Corp. (CPN), the parent company of Calpine Construction Finance Company, L.P., Friday announced a new credit agreement providing for a first lien senior secured term loan facility.
The loan facility comprises a $900 million 7-year term loan B tranche priced at LIBOR plus 225 basis points, and a $300 million 8.5-year term loan B tranche priced at LIBOR plus 250 basis points, in each case with a LIBOR floor of 0.75 percent.
The term loans were offered to investors at an issue price equal to 99.75 percent.
Net proceeds received from the new term loans will be used to redeem the entire $1 billion of CCFC's outstanding 8 percent senior notes due in 2016, to pay related transaction expenses and for other purposes.
The redemption of these notes is expected to be consummated on June 3, at which time the new term loan facility is expected to be drawn.
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