Calpine Corp. (B/Negative/--) formed Power Contract Financing LLC (PCF) to monetize a power sales agreement (PSA) between the California Department of Water Resources (CDWR) and Calpine Energy Services (CES). PCF purchased the rights to, title, and interest in the CDWR PSA, under which CES sells electricity and electricity capacity to CDWR. PCF also entered into a mirror power purchase agreement (PPA) with Morgan Stanley Capital Group (MSCG), under which PCF purchases electricity from MSCG. PCF also entered into an indenture and related financing documents. To finance the PSA and PPA, PCF issued the notes discussed below, and engages in other activities incidental to both agreements. The 'BBB' rating on PCF's $802 million senior secured notes ($688 million outstanding) is supported...
Companies mentioned in this report are:
- California Dept of Wtr Resources
- Pacific Gas & Electric Co.
- Morgan Stanley
- Calpine Corp.
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