An auction of $54 million worth of NRG Energy's $2 billion credit facility held by its finance company was said to have gone off in the 27 1/2 to 28 1/2 context a week ago last Friday. The buyer and seller of the piece could not be determined. Traders said if the market for the finance company's bank debt rises into the 30s, there will be many more lenders looking to unload. Two weeks ago, the paper rallied from the low 20s after NRG's parent company, Xcel Energy, announced an agreement with NRG creditors that would give NRG a larger than expected payout (LMW, 3/31).
NRG is working with creditors toward a comprehensive restructuring plan. In company filings, NRG has said it is likely that it will file for bankruptcy and if so Xcel Energy's equity ownership will most likely be eliminated and a large number of NRG's creditors' claims will be impaired. A company spokeswoman said no decisions have been made in regard to how the company will consummate its restructuring.