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) 6,665 23 12.97
2 Citi 5,781 17 11.25
3 BNP Paribas 3,715 15 7.23
4 Barclays 2,853 9 5.55
5 Credit Suisse 2,783 8 5.42

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 99,250.27 279 13.13%
2 Bank of America Merrill Lynch 91,648.43 266 12.13%
3 Wells Fargo Securities 72,661.39 222 9.61%
4 JPMorgan 52,367.24 169 6.93%
5 Credit Suisse 41,885.89 127 5.54%