Shares of power company Calpine ( CPN) jumped in midday trading Thursday after the company said it is planning an offering of $1.8 million of "second-priority" senior secured notes and term loans, in order to pay down debt.

Shares of the company were up about 5.5%, or 35 cents, at $6.75 on the news.

The final principal amount and note maturities will be determined by market conditions, the company said. The company said the notes and term loans will be secured by substantially all of the assets owned directly by Calpine, including natural gas and power plant assets and the stock of Calpine Energy Services and other subsidiaries.