By Ronda Fears
Nashville, Tenn., July 2 - Mirant Corp. sold $370 million of five-year convertible senior notes at par to yield 5.75% with a 24% initial conversion premium via joint bookrunning lead managers Banc of America Securities, Credit Suisse First Boston and Salomon Smith Barney.
The issue sold at the middle of yield talk and at the richer end of premium guidance of 20% to 25%.
The energy and power company plans to use proceeds to pay down its $1.125 billion bank revolver that matures July 17, which is currently in negotiations for amendment, and general corporate purposes.
Terms of the new deal are:
| Issuer: | Mirant Corp.
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| Amount: | $370 million
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| Greenshoe: | $55.5 million
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| Lead Managers: | | Banc of America Securities, Credit Suisse First Boston and Salomon Smith Barney
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| Maturity Date: | July 15, 2007
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| Coupon: | 5.75%
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| Issue Price: | par
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| Yield: | 5.75%
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| Conversion Premium: | 24%
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| Conversion Price: | $7.58
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| Conversion Ratio: | 13.1989
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| Call: | non-callable for three years
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| Ratings: | Fitch: BBB-
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| S&P: BBB-
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| Settlement Date: | July 8
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