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No. of Recommendations: 1
At the present moment, I would say 80% of my holdings are <10 year redemptions. However I really like this particular space, wholesale electricity generation. You may know, but recently Mirant & RRI completed a massive merger. Expected annual savings due to the synergy between these two companies is in the $160M+ ball park. The company is now called GenOn. They have 8 electricity generating facilities and about $1.6B or so in cash.

Right now Mirant has two oustanding floats and RRI has two oustanding floats. There is also one GenOn escrow float as well. The shorter bonds pay coupons in the upper 7% and low/mid 8%. Might be worth checking if you have some spare time. If anyone out there is by chance a holder of any of these bonds, drop a line.

The 2031 particular bonds might be too big a leap of faith for me because that is basically 20 years from now. As I mentioned this is the longest issue they have and its worth $400M. Might be just prudent to go with their 2017 (7.785%) or 2021 (8.5%) issues. Credit rating is B3. At this moment company is in the red.
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