Morgan Stanley is left lead on a $950 million senior secured term loan B refinancing for Calpine Corp. that is expected to close next week.

The seven-year loan was priced at 275 basis points over Libor—the wide end of price talk—on March 22. It is being issued at 99% with a 0% index floor. S&P Global Ratings assigned the deal a BB rating on March 20.

Moody’s Investors Service also rates Calpine's senior secured debt. The rating agency affirmed its Ba2 rating on Jan. 23 while maintaining its negative outlook on the company, noting that the independent power producer derives some 15% of its revenues from power purchase agreements with embattled utility Pacific Gas & Electric.

Calpine also has senior unsecured corporate debt, which is rated B by S&P and B2 by Moody's.

Spokespeople for Calpine in Houston and Morgan Stanley in New York did not immediately respond to requests for comment.

BNP Paribas, Citi, Credit Suisse, Deutsche Bank, JP Morgan, Natixis, RBC Capital Markets and Sumitomo Mitsui Banking Corp. are joint bookrunners on the loan refinancing and Goldman Sachs is collateral agent.

White & Case is legal adviser to Calpine while Cahill Gordan & Reindel is advising the banks.

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