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  • Atlanta-based Mirant has taken a first step toward restructuring some $3 billion in debt by asking banks to grant waivers on potential loan covenant breaches until the end of May.
  • Europe & Middle East
  • Consolidated Edison Co. of New York, the utility arm of Consolidated Edison, recently tapped the 30-year end of the yield curve with a $175 million offering of 5.875% senior notes. The funds will be used partially to take down short-term debt that was used to pay off a $150 million note that matured April 1, says Mona Yee, an analyst at Fitch Ratings in New York.
  • The U.K. government's aggressive growth targets for adding wind power and other renewable generation could undermine any near-term recovery in the country's moribund wholesale power market. Dominic Nash, pan-European utility analyst at Credit Suisse First Boston in London, argues the Blair government's desire to meet Kyoto carbon dioxide emission reduction targets will take the wind out of the sail's of a potential recovery by adding more generation capacity into a market already awash with overcapacity.
  • Mike Dolan, fixed-income utility analyst at Bank of America in London, has left the investment bank to take up a buyside research position at Fidelity Investments, also in London. Market watchers say Dolan's new brief is covering European industrials, and won't include utilities, a sector covered by Kristian Atkinson at Fidelity.
  • John Lange, managing director and senior power sector banker at Lehman Brothers in London, is returning to New York later this month to cover the power industry stateside, says an official at the Wall Street firm.
  • Vasant Datani, London-based cfo at AEP Europe, left the company earlier this month, a departure reflecting AEP's desire to rein in its European operations, say market watchers. "It's scaling back to bare bones," notes one official, adding AEP Europe is keeping sufficient staff to operate, manage and trade around its two 2 GW coal-fired power plants in the U.K., Fiddler's Ferry and Ferry Bridge.
  • Jules Putterman, managing director and head of energy sales at Bank of America in London, has left the firm to join AIG Energy in Greenwich, Conn. Putterman says he starts May 1, but declined further comment. Julian Barrowcliffe, global head of commodities at BofA, declined comment.
  • PSEG Energy Holdings, the unregulated arm of Public Service Enterprise Group, has earmarked part of the proceeds from a $350 million note issue to take down the last part of its debt portfolio guaranteed by its parent.
  • The Long Island Power Authority is close to selecting one of two rival Long Island power projects as its long-term power contract counterparty. Given the difficulty of financing merchant generation in today's embattled wholesale market, market watchers says LIPA's decision could determine which of the projects reaches fruition.