The debt of several energy companies surged last week. Teco Energy, MachGen, Cottonwood Power, the Magnolia Power Project and Southaven Power were among the large climbers, according to traders. Teco's term loan was the biggest mover, climbing to 100 3/4 from the low 90s. MachGen's term loan was up three points to the 125-127 range. Cottonwood Power's standby letter of credit traded up to 83 1/2 from 77 and Magnolia's pro rata loan was up a point to 53.
"The whole market feels good," said a trader. "There has been a ton of power project finance loans done. You can buy the paper on the cheap." She added that a lot of loans have an equity component tied to them, which make them attractive. Increasing oil and gas prices have also helped boost the trading of energy names, said a trader.