SAN FRANCISCO (Standard&Poor's) Jan. 10, 2011--Standard&Poor's Ratings Services assigned its 'B+' rating to Calpine's proposed $1.2 billion senior secured notes due 2023. In addition, we assigned a recovery rating of '2' to the notes, indicating our expectation for substantial (70%-90%) recovery of principal in the event of a payment default. At this recovery level, issue ratings are one notch above an issuer's 'B' corporate credit rating. The company will use the proceeds to refinance a part of its bankruptcy emergence term loan and eliminate the 2014 bullet maturity. With this bond offering, Calpine completes its refinancing of its bankruptcy exit facilities and transitions to a new set of covenants, which are less onerous than the covenants
