Calpine’s Banks OK New Credit Line

Calpine Corp., which produces electricity in 22 U.S. states, said its banks agreed to terms on a two-year, $950-million credit line to replace existing debt.

The company and the banks previously had agreed to a July 16 deadline to make the agreement final, San Jose-based Calpine said in a statement, without disclosing details of the terms. An extension of the existing credit would have expired today.

Shares of Calpine fell 46 cents, or 6.8%, to $6.30 on the NYSE.

Calpine 8.5% coupon notes maturing in 2011 fell 3 cents to 72 cents on the dollar, according to Trace, the bond-price reporting service of the NASD, formerly known as the National Assn. of Securities Dealers. That increased the yield to more than 14.7%, up from 13.9% on Friday.