CoBank approached the market last week with approximately $120 million worth of project-finance loans for sale, but floors set by the firm were too high for the paper to trade, explained loan traders. The paper for sale included $20 million of AES Londonderry, $50 million of Exelon Boston, and $50 million of TECO-Panda. The minimum price for the loans were said to be around the mid 50s range, the 82 context, and the 72 level, respectively.
Traders said there were no solid bids for AES Londonderry, but estimated the market to be around the 50 level. The same was true for Exelon Boston, but the market was said to be about the 80 context. Meanwhile, TECO-Panda was quoted around the 62-65 range. One dealer speculated that the bank would maintain the floors, until the market prices reached those levels. Officials at CoBank did not return calls by press time.