The $5 billion debtor-in-possession credit for Calpine broke for trading last Wednesday afternoon around par 1/4-1/2, according to a trader. The debt traded a little stronger up to par 3/8-5/8 and ended the day around par 3/8-1/2, he said. The DIP refinances the bankrupt energy company's previous $2 billion DIP, entered into last year (CIN, 1/23/2006). Credit Suisse, Goldman Sachs, Deutsche Bank and JPMorgan lead the new two-year DIP which comprises a $1 billion revolver and a $4 billion term loan. Both tranches are priced at LIBOR plus 2 1/4%.
Deutsche Bank and Credit Suisse led the previous facility, which included a $1 billion revolver, a $350 million "B" term loan and a $650 million second-lien term loan (1/23/2006). The revolver and term loan were priced at LIBOR plus 2 1/4% and the second-lien was priced at LIBOR plus 4 1/2%. The company filed for bankruptcy in December 2005. Calls to a company spokesman were not returned.