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MUFG Bank Agents $1.1B in Green Financing for Calpine Corporation

June 11, 2020, 09:05 AM
Filed Under: Energy
Related: MUFG Bank

Calpine Corporation (“Calpine”), one of the nation’s leading producers of renewable geothermal energy, announced the closing of a $1.1 billion Climate Bonds Certified financing for its wholly-owned subsidiary, Geysers Power Company, LLC (“GPC”).

The financing consists of a $900 million senior secured term loan (“Green Loan”) and a $200 million letter of credit facility. The Green Loan will bear interest at LIBOR plus 2.00% per annum, increasing by 0.125% every three years, and matures in 2027. GPC intends to use the proceeds of this financing to repay Calpine for equity invested in GPC, as well as to fund ongoing operations, maintenance and capital expenditures. Calpine intends to use its equity proceeds to repay corporate and project-level debt and for working capital and other general corporate purposes.

DNV GL, a Climate Bonds Initiative (CBI) Approved Verifier, has performed the pre-issuance verification of the Green Loan.

GPC owns 13 geothermal power plants at The Geysers, which is the largest complex of geothermal power plants in the U.S. and is responsible for providing almost one-tenth of the renewable power produced in California every year. By virtue of its steam resources, interconnected fields and water reinjection capabilities, The Geysers is a unique geothermal facility that sustainably generates reliable power for its customers in Northern California year in and year out.

MUFG Bank, BNP Paribas, Crédit Agricole, Natixis, Mizuho Bank, National Bank of Canada, Sumitomo Mitsui, SunTrust Robinson Humphrey, CoBank, Rabobank, ING Capital and DZ Bank acted as lead arrangers on the transaction. In addition, MUFG Bank acted as Administrative Agent and First Lien Collateral Agent, BNP Paribas acted as Syndication Agent, and Crédit Agricole and Natixis acted as Green Loan Coordinators. White & Case LLP acted as borrower counsel and Latham & Watkins LLP acted as lender counsel on the transaction.

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