trending Market Intelligence /marketintelligence/en/news-insights/trending/N2VZ3mPbf7YcMN_vpEglxQ2 content esgSubNav
In This List

Calpine unit Geysers Power to offer senior notes

Video

S&P Capital IQ Pro | Powering Your Edge

Video

S&P Capital IQ Pro | Unrivaled Sector Coverage

S&P Capital IQ Pro | Powered by Expert Insights

Blog

Enterprises are missing out on 24B by not optimizing cloud spending not going multicloud


Calpine unit Geysers Power to offer senior notes

Geysers Power Co. LLC plans to offer senior secured notes, series A, due 2039, and senior secured notes, series B, due 2039, in a private placement to qualified institutional buyers, according to an Oct. 17 news release.

The notes will be secured equally and ratably with the indebtedness under a new, seven-year, $320 million senior secured revolving credit facility and a new, 10-year, $400 million senior secured term loan.

Geysers Power plans to use proceeds from the offerings, together with borrowings under the new term loan facility and letters of credit, to fund a debt service reserve account and a major maintenance reserve account, pay costs associated with the offerings and entry into the new credit and term loan facilities; pay a dividend to Calpine Corp.; and fund working capital, ongoing capital requirements and for general corporate purposes.

Prior to consummating the notes offering, Geysers Power and certain other Calpine subsidiaries involved in geothermal generation will "each be released from current guarantee obligations in respect of Calpine Corporation's indebtedness and the related liens encumbering the Geysers assets will be released and no longer available to satisfy creditors of Calpine Corporation," the company said, adding that, "Neither Calpine Corporation nor any other affiliates of Calpine Corporation will guarantee the payment of the notes or will have any liability for any of [Geysers Power's] or the guarantors' obligations under the notes."

Geysers Power, a Calpine subsidiary, owns 13 Geysers geothermal power plants and related assets.