Calpine Corporation amended its revolving credit facility to increase the capacity by approximately $330 million from approximately $1.69 billion to approximately $2.02 billion, and entered into a new seven-year $950 million first lien senior secured term loan facility with Morgan Stanley Senior Funding, Inc., as administrative agent, MUFG Union Bank, N.A., as collateral agent and the lenders party thereto from time to time.
Calpine used the proceeds received from the 2026 First Lien Term Loan Facility to repay in full the approximately $400 million first lien senior secured term loan facility dated February 3, 2017 and the approximately $550 million first lien senior secured term loan facility dated December 15, 2015.
The Credit Agreement provides for a first lien senior secured term loan facility in an aggregate principal amount of $950 million, which bears interest, at Calpine’s option, at either (i) the Base Rate, equal to the highest of (a) the Federal Funds Effective Rate plus 0.5% per annum, (b) the Prime Rate or (c) the Eurodollar Rate for a one month interest period plus 1.0% (in each case, as such terms are defined in the Credit Agreement), plus an applicable margin of 1.75%, or (ii) LIBOR plus 2.75% per annum (with no LIBOR floor). Calpine will pay an upfront fee to the Lenders (as defined in the Credit Agreement) in an amount equal to 1.0% of the aggregate principal amount of the 2026 First Lien Term Loan Facility, which may be structured as original issue discount.
Calpine may reprice the 2026 First Lien Term Loan Facility, subject to receiving the required approval from the Lenders. If a Repricing Transaction (as defined in the Credit Agreement) occurs prior to the six-month anniversary of the closing date, Calpine will pay to the Administrative Agent for the account of the Lenders a prepayment premium equal to 1% of the principal amount that is being repriced. Calpine may elect to extend the maturity of term loans under the 2026 First Lien Term Loan Facility, in whole or in part, subject to approval from Lenders holding such term loans and willing to so extend.