2 July 2002 – Atlanta-based energy group Mirant said today that it had completed its debt offering aimed at boosting its balance sheet in the wake of a sharp fall in share price and credit rating downgrades.

Mirant sold $370m in convertible senior notes due 2007, scheduled to close on July 8, 2002. The company said in a statement it plans to use the proceeds for liquidity, working capital and general corporate purposes.

The convertible securities will carry an annual interest rate of 5.75 per cent and will be convertible into shares of Mirant common stock at an initial price of $7.58 per share. This conversion premium represents a 24 per cent premium over Mirant’s closing price of $6.11 on July 1, 2002.

“This offering represents another successful step in our plan to maintain adequate liquidity and preserve financial flexibility,” said Marce Fuller, president and chief executive officer, Mirant.

Mirant’s joint book-running managers, Banc of America Securities LLC, Credit Suisse First Boston and Salomon Smith Barney, have the right to exercise the underwriters’ option to purchase an additional 15 per cent of the issue amount for a period of 30 days.