Mirant Philippines plans $700 million term loan

By Sara Rosenberg

New York, July 11 - Mirant Philippines plans to obtain a new $700 million term loan, according to a company news release.

Credit Suisse is the lead bank on the deal.

The term loan will be syndicated by Credit Suisse's emerging markets group in Singapore, a market source told Prospect News.

The term loan will be prepayable at par.

Proceeds from the term loan will be used to help fund a modified Dutch auction tender offer by Mirant Corp. for up to 43 million of its shares and to pay off existing debt in the Philippines.

Under the tender, Mirant is offering to repurchase the shares at a price not less than $25.75 and not more than $29.00 per share for an aggregate purchase price of up to $1.25 billion.

The tender offer will commence on Wednesday and will expire on Aug. 21.

Mirant also announced that it is starting an auction process to sell the Philippines business, as well as its Caribbean business. The sales are expected to close by mid-2007.

Credit Suisse is acting as financial advisor for the sale of the Philippines business and JPMorgan is acting as financial advisor for the sale of the Caribbean business.

Mirant is an Atlanta-based energy company.

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