Calpine Drifts Lower On Ratings News

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Calpine Drifts Lower On Ratings News

Tranches under the new $2.4 billion financing for Calpine Generating Co. weakened further in the secondary market after Standard & Poor's announced ratings for the new financing.

Tranches under the new $2.4 billion financing for Calpine Generating Co. weakened further in the secondary market after Standard & Poor's announced ratings for the new financing. The second-lien and third-lien pieces slipped after they were assigned B and CCC+ ratings, respectively. The second-lien dipped from the 961/2-971/2 context to the 941/2-951/2 range. The third-lien sunk from the 973/4-983/4 level to the 93-95 context. The first-lien loan was able to largely maintain its 100-1001/2 trading levels from last week on S&P's B+ rating. Calls to Rick Barraza, Calpine's senior v.p. of investor relations, were not returned.

 

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