Calpine scraps $2.3 billion loan and junk bond sale

San Jose-based Calpine last month cancelled a $2.3 billion secured term loan and secured notes offering. Its wholly owned subsidiary, Calpine Generating (CalGen) Company (formerly Calpine Construction Finance Company II ) cancelled its offerings due to lacklustre investor demand.

The decision to scrap the offering is something of a turnaround for the energy company, which until recently enjoyed significant success in tapping the capital markets.Calpine initially announced the financing package in early February but cancelled the offering 22 days later. The offerings was meant to include approximately $1.3 billion of non-recourse, first priority secured institutional term loans and approximately $1 billion of non-recourse, second-priority secured notes. CalGen

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