Pricing on Calpine's $600 million "B" term-loan has been upped to LIBOR plus 33/ 4% after investors balked at the proposed LIBOR plus 23/ 4% spread. The loan has still not been launched, but pre-syndication efforts revealed investors are nervous about committing funds to the energy company, said bankers. The loan also had its original launch date postponed as the banks awaited further information (LMW, 4/8). A lack of familiarity with the name and a downgrade from Moody's Investors Service are two issues putting pressure on the coupon, bankers and investors said. Also, investors are not very familiar with the company and are looking to the bonds, which are trading in the 80s, one banker said. Credit Suisse First Boston, Salomon Smith Barney and Deutsche Bank have underwritten the two-year institutional tranche, which is part of a $2 billion financing package for the company.
Calpine Gets Price Hike Treatment