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 Citi 10.72
2 Bank of America Merrill Lynch (BAML) 10.66
3 Credit Suisse 6.45
4 Lloyds Bank 6.42
5 JP Morgan 6.35

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 16 Jan 2017
1 SG Corporate & Investment Banking 1,260.06 2 126,006,164,037.19%
2 Rabobank 1,081.86 1 108,185,922,974.77%
3 Wells Fargo Securities 430.57 1 43,057,020,785.00%
4 SK Securities 192.86 1 19,286,162,593.99%
4 Meritz Financial Group Inc 192.86 1 19,286,162,593.99%