Calpine increases term loan to $1 billion; decreases revolver to $1 billion

By Sara Rosenberg

New York, June 4 - Calpine Corp. said it increased its term loan to $1 billion from $600 million and decreased its revolver to $1 billion from $1.4 billion. Salomon Smith Barney, Deutsche Banc Alex Brown and Credit Suisse First Boston were lead arrangers for the term loan.

"This financing further demonstrates Calpine's ability to continue to raise capital in today's difficult financial and power markets," stated Bob Kelly, chief financial officer, in a news release. "Increasing our term loan by $400 million significantly extends Calpine's access to capital and lowers our refinancing requirements in 2003 by $400 million."

The secured term loan matures in May 2004. The revolving line of credit consists of a $600 million and a $400 million secured revolver, each maturing in May 2003.

On May 10, the San Jose, Calif. independent power company received $500 million in partial funding of the term loan. On May 31, the company received the remaining $500 million, the release said.

Standard & Poor's rates the loans BBB-. Moody's Investors Service rates the loans Ba3.

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