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 Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 3,319 10 12.84
2 Citi 2,562 6 9.92
3 Goldman Sachs 2,150 3 8.32
4 Credit Suisse 1,822 6 7.05
5 Societe Generale 1,814 4 7.02

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 22 May 2017
1 Citi 41,255.30 117 12.99%
2 Bank of America Merrill Lynch 37,631.92 109 11.85%
3 Wells Fargo Securities 32,082.26 89 10.11%
4 JPMorgan 20,969.41 64 6.60%
5 Credit Suisse 16,754.47 44 5.28%