Mirant Corp . bank debt led the secondary market last week with about $120 million coming out from one seller alone. The $120 million of exposure did not trade in one piece, said traders, but rather in many pieces across the different tranches. The seller of the piece could not be determined. The bank debt was up about three to four points last week. Traders speculated that the lender took the opportunity to sell down its exposure to the credit as the levels for the name inched higher. Others suggested the lender was looking to clean up its books before year end.
Thomas Lauria , a partner at White & Case and a Mirant attorney, said that it is unclear who the larger creditors holding on to Mirant claims are at this point in time. The debt has been trading actively and many of the large creditors at the beginning of the bankruptcy proceedings are no longer holding on to the claims, he explained. Mirant has $2.7 billion of bank debt at the corporate level and approximately $300 million of bank debt at its Mirant Americas Generation entity.
Mirant bank debt has been creeping higher with energy names in general, said market sources. One dealer also said the name ran up after the large piece cleared, lessening the technical pressure on the loan. The company's '03 bank debt was trading in the 55-56 1Ž 2range, the '04 around the 58 level and the '05 loan in the 77 1Ž 2-78 1Ž 2context toward week's end. At least $46 million of the '05 paper traded hands, said a trader. One dealer also said there is a large buyer of the company's bonds, but the identity of the buyer could not be determined by press time. The company has recently extended its period of exclusivity until April 30 and is going to try to have its business plan in front of the creditors in March, Lauria added.