ATLANTA, Jan. 29, 2002 — Mirant (NYSE: MIR – news) today affirmed its liquidity position and normal volumes in its marketing and risk management operations.
The announcement followed a downgrade to junk status late last year from Moody’s Investors Service that sent shares of Williams Cos. down as much as 19 percent on Tuesday on the New York Stock Exchange.
“Mirant has sufficient liquidity to conduct full business operations, despite the recent downgrade by Moody’s,” said Raymond D. Hill, chief financial officer, Mirant.
“We currently have $750 million in available cash and credit lines. This amount is available even after posting additional collateral required in our risk management business and absorbing more than originally anticipated in a loan refinanced by our Asian business unit.”
Added Hill, “We’re seeing normal trading activity, and power and natural gas volumes, in our marketing and risk management business. Mirant has posted the collateral required to conduct trading with all its major counterparties. Our business was designed to manage asset risk, and its performance demonstrates that Mirant has sufficient liquidity to manage that risk.”
Mirant also expects to realize an additional $900 million or more in after-tax proceeds from the sale of its German subsidiary, Bewag. This transaction is expected to close in mid-February.
Mirant will discuss details associated with its business strategy, along with fourth quarter and year-end earnings, at noon EST on January 31.
Investors, media and the public are invited to listen to the call at www.mirant.com. A recording of the call will also be available until February 7, 2002 for replay at this site.