Accounts are hearing that Calpine today withdrew its proposed repricing of its term loans due to market conditions, according to sources.

As reported, the issuer had been seeking to cut pricing on its B-1, B-2 and B-3 term loans to L+275, with a 0.75% LIBOR floor. The repriced loans were offered at par, for a yield to maturity of about 3.55%. Goldman Sachs was arranging the transaction, for which commitments were due at the end of the day yesterday.

All three term loans are currently priced at L+300, with a 1% LIBOR floor, and are covered by a 101 soft call premium that rolls off in February 2014. The B-1 and B-2 term loans mature in April 2018 and its TLB-3 matures in October 2019. There was about $2.46 billion outstanding across all three tranches as of March 31, SEC filings show.

The opportunistic transaction was withdrawn as conditions in the secondary loan market continued to weaken today amid a sell-off in high-yield bonds. Sources note that the recently inked $2.022 billion TLB due 2018 for BB-/Ba3 NRG Energy (L+200, 0.75% floor) had drifted down to 99.125/99.375 as of this afternoon, which is below where the paper was issued a week ago. The $450 million incremental tranche was issued at 99.5, while the repriced $1.572 billion existing term loan was issued at par.

This was the second time the publicly traded independent power producer approached the loan market for a repricing this year. In February, the issuer repriced its term loans to L+300, with a 1% LIBOR floor via Morgan Stanley.

Calpine is rated B+/B1, while the loans are rated BB-/B1, with a 2 recovery rating from S&P. The company trades on the NYSE under the ticker CPN with an approximate market capitalization of $9.04 billion. – Kerry Kantin/Chris Donnelly