Mirant launches retranched $1.5 billion exit facility

By Sara Rosenberg

New York, Dec. 5 - Mirant Corp. held a bank meeting on Monday, launching a somewhat retranched $1.5 billion exit financing credit facility (Ba3), according to a market source.

The facility was presented to investors as an $800 million six-year revolver, a $500 million seven-year term loan and a $200 million pre-funded letter of credit facility, the source said.

Originally, the deal was expected to consist of a $1 billion revolver and a $500 million term loan, with pricing on the revolver expected at Libor plus 200 basis points if the deal is rated Ba3 or BB- or higher and Libor plus 225 bps if its rated B1 or B+ or lower, and pricing on the term loan expected at Libor plus 175 bps if rated Ba3 or BB- or higher and Libor plus 200 bps if rated B1 or B+ or lower.

JP Morgan, Deutsche Bank and Goldman Sachs are the lead banks on the deal, with JPMorgan the left lead.

Proceeds will be used to fund intercompany restructuring transactions and help pay claims against the consolidated Mirant Americas Generation LLC debtors.

Mirant is an Atlanta-based power company.

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