Rumors are circling that a refinancing of bank debt under the Calpine Corp. entity Calpine Construction Finance Company II (CCFC II) is in the works. Traders could not provide any further details, but said the existing debt is certainly trading like there is a refinancing on the way. CCFC II paper changed hands in the 98-99 context last week. Previously, the name had been quoted in the 97-971/5 range, one traded noted.
CCFC II's $2.5 billion secured revolver matures this November. The company had approximately $2.17 billion outstanding on the piece as of September. Calpine's CCFC I debt was refinanced last year with a new $750 million deal comprising a $385 million first-lien term loan priced at LIBOR plus 6% and a $365 million second-lien loan priced at LIBOR plus 81/2%. A unique six-year spark spread hedge was also incorporated into the Goldman Sachs-led deal. Calpine added another $50 million to this debt package in September. Calls to Richard Barraza, Calpine's senior v.p. of investor relations, were not returned by press time.