Mirant Trades Down After Aggressive Bidding

Mirant's bonds traded down after investors piled into the unsecured debt following the proposed NRG/Texas Genco acquisition.

  • 14 Oct 2005
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Mirant's bonds traded down after investors piled into the unsecured debt following the proposed NRG/Texas Genco acquisition. Its 7.4% '04 bonds, which are in default, traded down to 120 from 128. Its 5.75% '07 bonds were down six points to 116. Its '03 revolving credit was down two points to 111. "The bonds were up too much on a frothy valuation of the company. People were bidding aggressively based on its equity value. But the fervor has died down," said a distressed debt trader.

Investors' favorable view of the company came after NRG's planned acquisition of Texas Genco in a deal valued at $5.8 billion. Equity sponsors of Texas Genco made a hefty profit on their original equity investments. Investors in Mirant bought into the unsecured debt, which will be converted into equity, in anticipation of making a big profit on the company as it emerges from bankruptcy.

  • 14 Oct 2005

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Share % by Volume
1 Societe Generale 13.43
2 Rabobank 12.61
3 Morgan Stanley 10.27
4 Barclays 7.86
5 Natwest Markets (RBS) 7.15

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 27 Mar 2017
1 Bank of America Merrill Lynch 18,561.02 56 11.69%
2 Wells Fargo Securities 18,160.90 57 11.44%
3 JPMorgan 12,092.45 38 7.62%
4 Citi 11,878.92 43 7.48%
5 Credit Suisse 9,276.87 26 5.84%