The loan-only credit default swaps of Mirant widened to 110-130 after it made a bid for NRG Energy, a trader said. NRG was trading a "little bit better," according to another trader. It was trading at 100-120 compared with last week when its spreads widen 20 basis points to the 105-120 context (CIN 5/29).
The revolvers on both companies were up about half a point, but the $3.575 billion NRG term loan was off about a quarter of a point and Mirant's $700 million term loan didn't really trade the first dealer said, because it was already trading at par. The NRG term loan was trading at 100.25-100.50 and Mirant's term loan was trading at 99.875-100.125, at press time last Thursday. He explained that if the acquisition happened, everything would be taken out at par. "The bank debt has been pretty quiet," another trader said. "You would figure there would be some volatility, but it has been shrugged off by the bank guys." Calls to both companies were not returned by press time.