U.K. power facilities have been charging upward in value, noted market players. Several auctions of the debt backing British Energy 's Eggborough power station were said to have been completed in the 56 1 / 2 -59 1 / 2 range. Loans backing the Teesside power project were quoted in the 64-66 range and Drax Holdings bank debt was quoted in the low 83-85 context. Dealers and buysiders said energy names in general are growing stronger because buyers are looking for equity plays as the debt supporting the power deals is restructured. Power prices are also coming back, noted one buysider.
Last week, Drax released documentation regarding it's proposed restructuring of £ 1.3 billion of debt, including £ 843 million in bank loans. Senior creditors will receive portions of new tranches of debt, or they may exchange certain tranches for cash or shares in Drax Group subject to formulas under the restructuring plan. A spokesperson for Drax could not be reached by press time.