U.S.-Based Calpine Corp.'s $1.5 Billion Of Senior Unsecured Notes Due 2029 And 2031 Rated 'B' (Recovery Rating: '5')

NEW YORK (S&P Global Ratings) July 27, 2020--S&P Global Ratings today assigned its 'B' issue-level rating and '5' recovery rating to Houston-based wholesale power generation company Calpine Corp.'s $650M of senior unsecured notes due 2029 and $850M senior unsecured notes due 2031. The company will use the proceeds from these notes, together with about $230 million of the proceeds from an earlier $900 million issuance at the Geysers, to retire about $1.7 billion of existing senior debt. Calpine intends to reduce its interest costs through this refinancing. We consider the refinancing to be leverage neutral because we add back the debt from the Geyser transaction to Calpine's balance sheet. The company used almost $366 million of the proceeds from the

...July 27, 2020 NEW YORK (S&P Global Ratings) July 27, 2020--S&P Global Ratings today assigned its 'B' issue-level rating and '5' recovery rating to Houston-based wholesale power generation company Calpine Corp.'s $650M of senior unsecured notes due 2029 and $850M senior unsecured notes due 2031. The company will use the proceeds from these notes, together with about $230 million of the proceeds from an earlier $900 million issuance at the Geysers, to retire about $1.7 billion of existing senior debt. Calpine intends to reduce its interest costs through this refinancing. We consider the refinancing to be leverage neutral because we add back the debt from the Geyser transaction to Calpine's balance sheet. The company used almost $366 million of the proceeds from the Geysers transaction to pay down other project debt and swap breakage fees (Steamboat) earlier in 2020. We expect Calpine to use a further $250 million of the proceeds from the Geyser transaction to pay down other corporate debt...

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