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GE Corporate Financial Services' global sponsor finance division has entered into strategic relationships with both Morgan Stanley and Lehman Brothers in order to provide one-stop financing solutions. Stuart Aronson, managing director and head of GE global sponsor finance, said the partnership links GE's balance sheet and coverage force with the high-yield underwriting expertise and large-cap universe of the two investment banks. Michael Hart, head of the global loan products group at Morgan Stanley, said "Morgan Stanley enjoys an excellent working relationship with GE and we look forward to strengthening that relationship in this important area of financial sponsors." Robert Redmond, Lehman's head of leveraged finance, and a Lehman spokeswoman did not return calls by press time.

A knack for integrating acquisitions has bolstered the credit rating of research and clinical products manufacturer and distributor Fisher Scientific International in the wake of the company's acquisition of Perbio Science. Fisher is buying 93.6% of total shares in Perbio, a manufacturer and supplier to the life-science and biotech industries, and is using a $250 million secured term loan to partially back the financing. The deal, led by J.P. Morgan, Deutsche Bank and Credit Suisse First Boston, wrapped up last month.

The deterioration in energy sector loans nearly offset improvements in the performance of other industry loans, according to this year's Shared National Credit (SNC) exam. Classified loans, or those assigned a rating of substandard, doubtful or loss, in the energy sector rose by $21.1 billion. Conversely, loans in the telecommunications and cable sector, which represented the largest decline in credit quality last year, showed a slight improvement, with classified loans in the indusrties falling by $2.4 billion. In the spring, traders predicted there would be less credit deterioration (LMW, 5/26).

The Pantry, a Sanford, N.C.-based convenience store retailer, is adding on first-lien and second-lien debt to its existing credit, which was completed last April. Wachovia Securities is shopping a $60 million addition for the "B" loan and $30 million in new money for the second-lien piece. Proceeds from the new debt will back the company's acquisition of the Golden Gallon convenience store chain from Ahold, USA. The credit currently includes a $52 million revolver, a $249 million "B" term loan and a $50 million second-lien loan. Pricing is at LIBOR plus 41/4% for the first-lien debt, while the second-lien piece has a coupon of 61/2% over LIBOR. The add-ons are priced the same as the existing debt. Dan Kelly, cfo, and a Wachovia banker, did not return calls.

Euramax International, a Norcross, Ga.-based manufacturer of aluminum, steel, vinyl and fiberglass, is refinancing its $110 million credit facility. A bank meeting for a new $145 million credit is scheduled for this Wednesday. Wachovia Securities is leading the deal, which includes a $110 million revolver priced at LIBOR plus 21/2%, down 25 basis points from the previous credit. A $35 million term loan "A" is also priced at LIBOR plus 21/2%. Scott Vansant, Euramax's cfo, declined to comment.

Conseco's new bank debt, which will be a part of the recovery package going to lenders, began to trade on a when-issued basis last week in front of the company's emergence from bankruptcy last Thursday. Traders said the loan was changing hands in the 991/2995/8 context. They also said the former credit facility had been quoted as high as the 1041/2 105 context due to its accrued interest, but has ceased to trade. The bankruptcy court confirmed the company's sixth amended joint plan of reorganization last Tuesday, sparking the trades last week. As a part of the reorganization plan, holders of bank debt claims will receive a new $1.3 billion credit facility, comprised of a $1 billion "A" loan and a $300 million "B" piece. Bank of America is the agent on the deal and J.P. Morgan holds the joint-lead arranger and joint book runner role with BofA. A Conseco spokesman declined to comment.

* Wilfred "Bill" Finnegan has joined The Carlyle Group as a senior advisor to the firm's high-yield operations to assist Carlyle's growing leveraged finance business. Finnegan draws from experience at Chase Manhattan Bank, where he was head of global leveraged finance.

Inveresk Research Group selected Wachovia Securities to lead its new $150 million credit facility in a move to develop a relationship with more core U.S. banks because the company is now headquartered in the U.S., said Paul Cowan, cfo. He explained that the drug development services provider originally had The Royal Bank of Scotland (RBS) as its lead bank, as Inveresk was previously based in Scotland.

Dobson Communications Corp.'s $700 million refinancing is scheduled to launch for syndication tomorrow, according to bankers familiar with the deal. The credit, led by Lehman Brothers and Bear Stearns, includes a $150 million revolver and a $550 million "B" loan. Price talk is in the LIBOR plus 31/2% range for the institutional piece, and in the LIBOR plus 3% context for the revolver, the banker noted.

Market players expect that a large piece of Mirant Corp. bank debt, estimated to be in the ballpark of $100 million, will hit the market in an auction. Rumors that the piece was set to auction echoed through the market last week, but no sale ever materialized. An original lender is said to be the seller and the piece is anticipated to be a mix of the company's three revolvers. No one lender holds $100 million of any one of the revolvers, noted one dealer.

The bank debt of the former WorldCom, now called MCI, has been trading actively this week as the company reached an agreement with dissenting creditor groups for its plan of reorganization. This settlement removes one of the obstructions to MCI's emergence from bankruptcy. The company's bank debt is now trading up toward its final recovery, which is estimated to be about 36 cents on the dollar.

SunTrust Bank and Credit Suisse First Boston are leading a $300 million facility for Overnite Transportation Co., a Richmond, Va.-based less-than-truckload hauling company that announced its spin-off from parent Union Pacific Corp. in August. CSFB and Morgan Stanley will underwrite the company's proposed IPO. The credit, which will be pitched at a Sept. 22 bank meeting, will include a $175 million revolver and a $125 million term loan, with five-year tenors.