New Term Loan Of Calpine Steamboat Holdings Essay

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SFS Energy Finance Americas (“SFS EF AM”) requests the approval to commit up to $100 million to the proposed refinancing of the existing Term Loan of Calpine Steamboat Holdings, LLC (“Steamboat” or the “Borrower”). The Borrower plans to raise about $465.0 million in the new Term Loan (the “Term Loan”) to repay about $195.0 million of the remaining senior-secured term loan as well as partially reimburse Calpine Corporation (“Calpine”) (B+/Ba3/B+; SFS Equivalent 7+) for the acquisition related costs of the Morgan Energy Center (the “MEC”). The MEC is 809 MW combined cycle facility in Decatur, Alabama. The refinancing will release the Mankato Plant (375 MW contracted facility in Minnesota) from the collateral agreement and replace it with the MEC as the collateral. In addition, the new term will extend the maturity of the new Term Loan by six years with an expected balloon at the maturity of about $126.6 million (27.2% / $120.56/kW). The balloon payment under the previous financing was about $356 million or about $578/KW. The new Term Loan maturity is the earlier of 9 years from the Closing or December 31, 2025. The Borrower also owns Freeport Energy Center (the “FEC”) – a 241 power generating facility in Freeport, Texas, and the lenders will have a first priority security interest in substantially all real and personal property and assets of these projects (FEC and MEC).

The FEC achieved commercial operations (“COD”) in 2007 and sells 50 MWs (about 5% of total capacity) to

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