Fitch: Calpine loan at BB

Fitch Ratings said it has assigned its BB/RR1 rating to Calpine Corp.'s $835 million senior secured term loan due 2019.

The agency said that the RR1 rating reflects a three-notch positive differential from the B issuer default rating and indicates that Fitch estimates outstanding recovery of 91%-100%.

The outlook is positive.

Fitch noted that the new senior secured term loan ranks equally and ratably with Calpine's existing senior secured term loans, revolving credit facility and first-lien notes and is subordinated to all existing and future liabilities of Calpine's subsidiaries that do not guarantee Calpine's revolving facility.

The net proceeds from this offering, along with cash on hand, will be used by Calpine to redeem 10% of the original aggregate principal amount of each of the series of its existing first-lien notes and pay down existing project level debt for Broad River and South Point, the agency stated.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.