Calpine closed on a $1.6 billion first lien term loan. Morgan Stanley, Goldman Sachs, Mitsubishi, Barclays and RBC acted as lead arrangers on the transaction.

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%).

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

Calpine is a generator of electricity from natural gas and geothermal resources.