Mirant Corp.'s '03 and '04 revolvers moved up to 76-77 from 74-74 1/2, while the '05 traded around 81 1/2-82 1/2 from 79 1/2-81 1/2. A higher valuation for competitor NRG Energy, market technicals and a better-than-expected recovery, are all factors in the rise, according to traders.
"People think there's going to be a much better recovery, closer to par than the 80-90s like everyone thought," one trader said. NRG's stock has traded higher and the market sees this as positive for Mirant, he added. At press time the stock was quoted at $38.63, up from $35 at the start of February. But another trader attributed the rise to market technicals and questioned the role of NRG's stock. The value has not gone up in the last two days while Mirant's revolvers have, he said.
Last month, Mirant's revolvers traded higher after a bullish report published by Conn.-based broker Libertas Partners. The '03 and '04 revolvers traded around 74-74 1/2, while the '05 found a market around 79 1/2-81 1/2 (LMW, 2/21). A Mirant spokesman did not return calls.