GGP, NRG Trade As Investors Hunt For Liquidity

General Growth Properties (GGP) and NRG Energy have climbed in secondary trading as investors search for larger, cheaper and better-rated credits.

  • 04 Feb 2005
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General Growth Properties (GGP) and NRG Energy have climbed in secondary trading as investors search for larger, cheaper and better-rated credits. Already tight liquidity has been further squeezed after Nextel Communications and Boise Cascade announced they are taking out their loans. Nextel refinanced its $2.2 billion "E" loan, while Boise's $1.225 billion "C" was taken out Feb. 4.

GGP's "A" and "B" tranches traded at 100 1/2-100 3/4 and 101 1/8-101 3/8. Two weeks ago, GGP's "A" was quoted 100 1/8, while the "B" was seen around 100 5/8. "It's moved up quite a bit," one trader said. "Assets that [investors] have are disappearing so people are using GGP to replace it because it's a great credit. The only reason why it hadn't traded up is because there's a lot of it," another dealer noted. Also, banks have almost finished selling the "A" tranche, which brings additional upwards pressure.

Meanwhile, NRG's $950 million "B" loan traded at 100 7/8-101 1/8. "The credit was below 101 a few days ago so people are flocking to it," another dealer noted. NRG's revolver is priced at LIBOR plus 1 7/8%. The $1.45 billion NRG financing also has a $150 million revolver and a $350 million letter of credit facility. Credit Suisse First Boston leads the deal, which is rated BB/Ba3.

GGP's "A" and "B" tranches are priced at LIBOR plus 2 1/4%. The real estate investment trust's credit is rated BB+/Ba2 and is jointly led by Banc of America Securities, Lehman Brothers, CSFB and Wachovia Securities. GGP also has a $500 million revolver and a $1.145 billion bridge loan.

  • 04 Feb 2005

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 14,443 29 18.07
2 Bank of America Merrill Lynch (BAML) 8,264 27 10.34
3 Lloyds Bank 7,329 24 9.17
4 Citi 6,748 19 8.44
5 JP Morgan 5,220 8 6.53

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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  • Today
1 Citi 118,826.70 342 11.07%
2 Bank of America Merrill Lynch 94,721.79 272 8.82%
3 JPMorgan 92,878.89 270 8.65%
4 Wells Fargo Securities 82,807.12 240 7.71%
5 Credit Suisse 70,475.74 184 6.57%