Calpine Corp.'s term loan was firmer this week as the company came out with its first quarter earnings report and revealed further details in its plans to increase liquidity. The company's term loan "B" was said to be trading in the 97 1/8 - 97 3/4 range, up from the 96 1/2 - 97 1/4 context, where the paper was quoted last week. The company's liquidity position looks better, said one trader. "A company like Calpine is going to be a little bit more sensitive to liquidity," he noted. Recently the company received $105.5 million from a contract monetization and the restructuring of its interest in Acadia Power Partners.
San Jose, Calif.-based Calpine is currently working to extend the maturity on its $1 billion corporate revolver for two years. The company will also tap the capital markets via Morgan Stanley for a $700 -$800 million transaction to monetize its DWR-1 contract, a 1,000 megawatt contract with about an eight-year life, noted Rick Barraza, senior v.p. of investor relations for Calpine. He declined to comment on ongoing discussions with the company's banks.
Meanwhile, after running up out of the 70s since the end of last month, Mirant Corp.'s bank debt has lost some steam. Small pieces of the bank debt traded in the 83-85 context, traders said. The bank debt ran up as high as 85 2/3 - 88 1/3, according to LoanX, before this recent slouch. Lenders are said to be getting frustrated with the company's slowness in restructuring approximately $5.3 billion of maturities. Mirant has not got a deal done yet in this market where everything is getting done quickly, said one trader. A spokesman for Mirant did not return calls by press time.