Calpine withdraws planned $615 million offering of 10-year notes

By Paul A. Harris

Portland, Ore., Sept. 24 - Calpine Corp. has withdrawn its $615 million offering of 10-year senior secured notes, according to a market source.

The transaction could not be completed in the 5% to 5¼% context which the company had contemplated, the source added.

The deal was expected to price late last week.

Morgan Stanley & Co. LLC, Barclays, Deutsche Bank Securities Inc. and RBC Capital Markets LLC were the joint bookrunners.

Proceeds were to have been used to redeem 10% of each series of Calpine's existing notes at 103 plus accrued interest.

The company had been planning to redeem $120 million of its 7¼% senior secured notes due 2017, $40 million of its 8% senior secured notes due 2019 and $110 million of its 7 7/8% senior secured notes due 2020.

Additionally, the company sought to redeem $200 million of its 7½% senior secured notes due 2021 and $120 million of its 7 7/8% senior secured notes due 2023.

Calpine is a Houston-based power company.

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