An original lender to Mirant Corp., with exposure to the Mirant Americas Generation (MAG) credit facility and one of the corporate credit facilities, sold off $87 million of the company's paper two weeks ago. A $64 million piece of the Mirant Corp. paper traded in the 711/2 range and a $23 million piece of the MAG loan changed hands in the 88 range. The buyers of the paper could not be determined. Market players said the paper traded in front of good news that boosted Mirant's debt. The corporate facilities expiring this month and in 2004 were quoted in the 72-74 range late last week.
In conjunction with its larger restructuring plan, Mirant is working to revamp $3.1 billion of bank debt. The company recently revised its proposal to provide up to $1.1 billion of first lien capacity ahead of the lien proposed to be shared by both the banks and bondholders. Sharing the liens had been a major point of contention for the banks (LMW, 6/9). Calls to a Mirant spokesman were not returned by press time.