Calpine Corp. (B/Negative/--) formed Power Contract Financing LLC (PCF; BBB/Negative/--) to monetize a power sales agreement (PSA) between the California Department of Water Resources (CDWR; BBB+/Watch Neg/--) and Calpine Energy Services (CES). PCF purchased the right, title, and interest in the CDWR PSA; sells electric energy and provides electric capacity to CDWR under the PSA; entered into a mirror power-purchase agreement (PPA) with Morgan Stanley Capital Group (MSCG); purchases electric energy from MSCG and has MSCG make available additional electric energy under the PPA; entered into an indenture and related financing documents; issued the notes discussed herein, and engages in other activities incidental to the above. PCF's 'BBB' rating is supported by the contractual structure provided by the transaction documents....
Companies mentioned in this report are:
- Morgan Stanley
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