Fitch Ratings assigned a ‘BB+’ rating to Calpine’s $562 million first-lien term loan facility maturing May 31, 2023 and $625 million 5.25% senior secured notes due June 1, 2026.
The term loan amortizes at 1% per year and is priced at L+300 basis points. The new term loan and the 2026 senior secured notes are secured equally and ratably by a first-priority lien on substantially all of Calpine’s and certain of its guarantors existing and future assets. The new financings are pari passu with Calpine’s existing first-lien debt including the revolving credit facility.
Fitch has assigned a Recovery Rating (RR) of ‘RR1’ (implying 91% – 100% recovery) to the new financings. The Rating Outlook is Stable.
Calpine used the net proceeds from the new financings, along with cash on hand, to repay approximately $806 million of the first-lien term loan maturing in 2019 and $381 million of the first-lien term loan maturing in 2020. With these new issuances, Calpine has extended its debt maturity profile and has no further corporate debt maturity until 2022.
Read the full Fitch press release here.