The new financing for Calpine Generating Co., formerly known as Calpine Construction Finance Co. II, softened after breaking into the secondary market last week. The $835 million super-priority tranche, which has about $600 million of loan paper, traded as high as the 100 3/4 range before resting into the 99 1/2 -100 1/2 context. The $740 million second-lien tranche, which has about $100 million of loan paper, was trading in the 96 1/4-97 7/8 level. Traders said the overall market was a bit weaker. Due to the plethora of Calpine debt already held by accounts, the name is subjected to an extra dose of technical pressure, they added. Officials at Calpine did not return calls.
Motor Coach Industries International continued to grow stronger, climbing almost 10 points over the last month with word that a refinancing is on the way. GE Capital, Goldman Sachs and Franklin Templeton are believed to be working on a three-part financing package for the company. The deal is expected to include asset-backed and second- and third-lien loans. The paper changed hands around the 95 context following a bank meeting earlier this week. The loan had been quoted in the mid 80s last month when the refinancing buzz began (LMW, 2/23). Allan Swanson, Motor Coach's cfo, and officials at the banks did not return calls by press time.