Calpine wraps $1.25 billion private placement; Harvest Health, Avidbank come to market

By Devika Patel

Knoxville, Tenn., Dec. 23 – Monday brought news of three new deals in private placement market.

Houston-based Calpine Corp., a generator of electricity from natural gas and geothermal resources, settled a $1.25 billion private placement of 4.5% senior secured notes due Feb. 15, 2028 on Friday.

Proceeds will be used for a tender offer or to redeem the company’s 6% senior secured notes due 2022 and its 5.875% senior secured notes due 2024 and for general corporate purposes.

Tempe, Ariz.-based Harvest Health & Recreation Inc., a multi-state cannabis company, settled the initial tranche of a private placement of senior secured notes and units on Friday, raising about $91 million.

The company sold roughly $73 million of 15% senior secured notes due 2022 and roughly 21,000 units, with each unit comprised of $1,000 of 9.25% senior secured notes and 109 warrants.

Canaccord Genuity Group Inc. was the agent.

San Jose, Calif.-based Avidbank Holdings, Inc., the parent company of Avidbank, secured $22 million through a private placement of 5% 10-year fixed-to-floating rate subordinated notes.

Sandler O’Neill + Partners, LP was the agent.

Interest accrues at 5% per year for the first five years. From then onwards, the notes will bear interest at a floating rate equal to SOFR plus 359.5 basis points.

Proceeds were used to repurchase $12 million of outstanding subordinated notes and will also be used for general corporate purposes.

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