More than $800 million of MachGen's $1.46 billion of bank debt traded in two days last week as rumors emerged that K-Road Ventures is in talks with lead creditor Société Générale to buy the assets (LMW, 4/18). Trades started at 97 1/2 and went up to 100-102. The paper came out of eight original lenders.
Bear Stearns took the first step buying $120 million from Citigroup at 97 1/2. Market participants also pointed at Credit Suisse First Boston and Lehman Brothers as being active in the name. CSFB, Lehman and Bear Stearns officials declined to comment. Calls to Citi were not returned.
K-Road is a New York-based firm run by entrepreneur William Kriegel. It invests in the infrastructure sector including energy, utilities, water, waste management and environmental services. K-Road is also said to be looking to buy the Exelon Boston generating facilities being sold through a BNP Paribas-led creditor auction. MachGen's credit, previously known as GenHoldings, was put in place in December 2001.