Edison Mission Midwest Holdings' loan was the talk of the secondary market last week after pieces of the company's credit traded out of the 90s into the 87 - 871/2 context following a bank meeting two weeks ago. A piece slightly less than $10 million was said to have traded in that range on Tuesday and a similarly sized piece traded in that context two weeks ago this Friday. One trader noted that the company's 10% bonds maturing in 2008 also fell out of bed, trading down to the 75 range from the 93-95 context. The details of the bank meeting could not be determined, but there are rumors that a number of banks are looking to sell, which reminds investors of the Mirant Corp. situation, market players noted. But whether or not commercial banks are ready to bail out of the name is in question, one trader suggested.
Edison Mission Midwest Holdings has $911 million in bank debt coming due in December. The company's management has said it is looking to refinance the debt, but market players are questioning why the company has not taken advantage of issuer-friendly market conditions sooner, explained one trader. Jo Ann Goddard, v.p. for investor relations at Edison Mission Midwest Holdings' ultimate parent company--Edison International, did not return calls.
There are a couple more facilities under the umbrella of Edison International that are causing some noise as well. Edison Mission Energy, Edison Mission Midwest Holdings' direct parent, has a loan that traders quoted in the low 80s. This is a $487 million corporate credit facility that includes a $275 million "A" piece that comes due September 16. Traders are also quoting another loan, which falls under another one of Edison International's main subsidiaries, Mission Energy Holdings. This loan is said to be pari passu with the entity's 131/2% bonds that are trading down around the 50 level.