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Calpine amends credit facility, secures new $750M term loan

Calpine Corp. amended its revolving credit facility to lower the outstanding commitments by $20 million, according to an Aug. 16 filing.

The amendment also extended the maturity of $150 million in revolving commitments to March 8, 2023, from June 27, 2020. Total capacity under the revolving credit facility is about $2.0 billion.

Calpine also entered into a new seven-year, $750 million first-lien senior secured term loan facility due 2026.

Together with cash on hand, the company used the proceeds from the loan facility to repay a $562 million first-lien senior secured term loan facility dated May 31, 2016, and about $200 million of outstanding project debt related to Otay Mesa Energy Center LLC, or OMEC, which owns the 608-MW Otay Mesa Generating Project.

OMEC retains the rights under a put option to transfer the Otay Mesa facility to Sempra Energy subsidiary San Diego Gas & Electric Co. by Oct. 3.

OMEC is also working on an alternative to move forward under a five-year resource-adequacy agreement with San Diego Gas & Electric. Without the contract, SDG&E could have been forced to buy the plant outright under a contract provision.

The agreement received initial approval from the California Public Utilities Commission on Feb. 21. An appeal of the decision was denied by the commission Aug. 1.

Credit Suisse AG, Cayman Islands Branch served as administrative agent for the term loan facility. MUFG Union Bank NA acts as collateral agent and the lenders party thereto from time to time.