Calpine Corp. (CPN), a U.S-based independent power producer, Thursday said it intended to offer senior secured notes in a private placement valued at $615 million and due 2022. The company added that it intended to use proceeds from the offering to redeem 10 percent of the original aggregate principal amount of each of the series of its existing notes and pay fees and expenses pertaining to the offering.
In addition , the company also said the notes will be guaranteed by each of Calpine's current and future subsidiaries and shall be secured with the indebtedness incurred under Calpine's credit facilities and subject to certain exceptions and permitted liens, said Calpine.
Further, the company, in a statement, revealed that notes shall not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the U.S. without registration under the Securities Act.
Wednesday, the stock closed at $17.26 on the NYSE.
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