Calpine closes senior secured notes offering

In Texas, Calpine Corp. announced the closing of $1.1 billion in aggregate principal amount of its 7.875% Senior Secured Notes due 2020 in a private placement. The net proceeds from the offering of the notes were used to repay a portion of existing term loan borrowings. The notes are guaranteed by each of Calpine’s current and future subsidiaries that is a guarantor under the company’s existing credit facility. The notes and related guarantees are secured equally and ratably with the indebtedness incurred under Calpine’s existing credit facility and other indebtedness that is permitted to be secured by such assets, and pretty much gets a first-priority lien on everything Calpine is and has.