Calpine is looking to tap the non-recourse loan market four times this year to finance the construction of a quartet of new peaker plants, say bankers familiar with its plans. The move marks a strategic u-turn for the beleaguered independent power producer. In recent years it has shunned single-asset financing in favor of monster-sized portfolio construction revolvers, which it thought offered more financial flexibility and cheaper funding. The San Jose, Calif.-based IPP blazed a trail with its last construction revolver, a mammoth $2.5 billion loan (PFR, 23/10/00). "It would be really hard to do another," says one official, referring to Calpine's recent credit rating problems. He also argues that with so many banks signed up to its two large construction revolvers, there might be a reluctance to commit more funds to similar paper from the same sponsor.
March 26, 2002