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Strategies & Market Trends : Take the Money and Run -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (14788)	8/13/2002 3:52:55 PM
From: AugustWest	Read Replies (1) \| Respond to of 17639

Wow Mr.Softie is selling off hard since the fed announcement.

To: MulhollandDrive who wrote (14788)	8/13/2002 6:28:19 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 17639

Mirant Corp. (MIR) --Senior debt rated 'BBB-' with Rating Outlook Negative. Liquidity is ample through June 30, 2003, but after that date MIR will need to have favorable results on additional asset sales or improve its access to banks or capital markets in order to balance its moderate 2003 cash needs. The situation has not been helped by the announcement of accounting errors that largely offset and would probably be insignificant except in the present highly-charged environment. In the past month MIR exercised the option to term out a $1.125 billion revolving credit agreement, converting that into a one-year term loan, and drew down against other unused bank facilities. The proceeds of the drawings have been retained to meet business needs that would otherwise be funded via the revolving credits. MIR also issued $370 million of convertible securities in July 2002, with a maturity of 2007, the proceeds of which are also available for liquidity needs. The company had about $1.4 billion estimated currently available for liquidity needs at June 30. MIR has already posted collateral of approximately $700 million on contracts as a result of a sub-investment grade rating by one rating agency and a favorable revision to the margin required under its gas marketing agreement with BP. Additional collateral needs if other ratings are reduced below investment grade are smaller, and are manageable relative to total liquidity. There are no debt maturities at the parent or its principal subsidiaries until July 2003, when $1.125 billion term note resulting from the term-out of the revolving credit will mature. Mirant's first half financial results from power generation and wholesale marketing while lower than the comparable period in 2001 were better than anticipated, and MIR has so far been able to realize sales of non-core assets without cutting deeply into the flesh. www2.marketwatch.com.