Calpine Closes $360 Million Senior Secured Term Loan

Calpine utilized the proceeds of the Term Loan to retire credit agreements totaling $340.4 million belonging to its wholly owned subsidiaries Deer Park Energy Center, LLC, and Metcalf Energy Center, LLC.

"Like our previous project refinancing earlier this year, this new Term Loan simplifies our capital structure by bringing debt up to the corporate level. This flexible, investment grade-like covenant package enhances our ability to make optimal capital allocation decisions while eliminating the need for subsidiary-level reporting and unnecessary project cash traps," said Todd Thornton, Calpine's Treasurer and Vice President, Finance.

The refinanced project debt pertains to two of Calpine's highly efficient, natural gas-fired, combined-cycle power plants. The Deer Park Energy Center in Deer Park, Texas, commenced commercial operations in June 2003, has the capacity to generate up to 1,001 megawatts of electricity and supplies steam to Shell Chemical L.P. The Metcalf Energy Center in San Jose, California, began commercial operations in June 2005 and has the capacity to deliver up to 605 megawatts of energy.

Morgan Stanley acted as lead arranger on the transaction.