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) 7,026 25 11.95
2 Citi 6,449 21 10.96
3 BNP Paribas 5,093 18 8.66
4 Barclays 4,040 11 6.87
5 Lloyds Bank 3,615 14 6.15

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 1,505.59 4 23.31%
2 SG Corporate & Investment Banking 1,292.64 1 20.01%
2 Rabobank 1,292.64 1 20.01%
4 BNP Paribas 598.25 2 9.26%
5 TD Securities Inc 241.54 1 3.74%