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Steady margin deterioration, financing costs, and the company's highly leveraged position have led Fitch Ratings to downgrade Owens-Illinois' bank debt and senior secured notes to BB- from BB. The margins for the company's glass business have been impacted by cold weather, a national strike in Venezuela, higher energy costs and declining non-cash pension income, according to Fitch. Margins have been further impacted by intense pricing pressure on the company's plastic operations.

Lexington Corporate Properties Trust has increased its revolver using an unusual structure that does not require a borrowing base. With a set borrowing base requirement, Lexington would need to maintain a dedicated group of properties free-and-clear of any mortgages or other obligations to support the loan. By the terms of this loan, Lexington is free to individually mortgage each property it buys, which it does to isolate risk, noted Patrick Carroll, Lexington's cfo.

Global Crossing's bank debt firmed up in trading as the company is growing closer to consummating its deal with Singapore Technologies Telemedia. Traders said $5 million pieces of the bank debt were trading in the 221/4 23 context last week after the market digested recent reports indicating President George W. Bush would approve ST Telemedia's purchase of the bankrupt telecommunications firm. Due to national security concerns, the transaction has to gain approval by the Committee on Foreign Investment in the United States. "We're confident that a favorable decision will result," said John Legere, Global Crossing's ceo, in a written statement. One buysider said bank debt holders were happy that the process was finishing up.

The strength and visibility of the defense industry has enabled a stream of acquisitions in the leveraged defense sector and the acquisition activity is expected to continue with U.S. defense spending growing substantially. "Defense companies have access to the capital markets, which is giving them the currency with which to do acquisitions," said Tom Gallagher, managing director and group head of defense and aerospace investment banking for Wachovia Capital Markets.

Airplane-interior producer B/E Aerospace needs to increase cash flow or convince its banks to relax credit covenants, or it is likely to default on its $135 million revolver within a year, according to Moody's Investors Service. "We think they will likely have to get an amendment or a waiver," said David Berge, v.p. and senior analyst at Moody's.

Huntsman is soon to receive lender approval for an amendment that will allow the company to issue $375 million in bonds, said Sean Douglas, Huntsman's v.p. and treasurer. Credit Suisse First Boston and Deutsche Bank will lead the bond deal. The proceeds from the bonds will be used to pay off the amortization on the company's $938 million "A" loan over the next couple of years and will then be distributed on a pro rata basis across the outstanding amount on the "A" loan, he explained.

The Hilb, Rogal and Hamilton Company (HRH) amended and extended its $290 million credit facility, aligning the maturity of the revolver tranche closer with that of the institutional tranche, explained Carolyn Jones, senior v.p., cfo and treasurer. The company had a pro rata deal and added a $160 million "B" loan with a June 2007 maturity date to its credit last year. The credit's revolver, which was increased from $100 million to $130 million with the amended agreement, was set to expire in July 2004, but HRH extended the maturity to December 2006. The original deal had a $30 million "A" loan, but that has been paid down, Jones noted. Some of the "B" loan has amortized down, she added.

The Airport Authority of Hong Kong (AAHK) launched itself into the dollar bond market this week with a debut $350m 10 year issue that pulled in $1.6bn of orders and scored the lowest coupon ever paid by a Hong Kong issuer.

Hyundai Motor Co catapulted itself back into the international bond market with a $400m 2008 bond last Friday, rounding off an extraordinary week of primary issuance from Korea.

ING Financial Markets has hired four equity salespeople in Hong Kong and Singapore.

Advanced Semiconductor Engineering (ASE), the Taiwanese integrated semiconductor and packaging company, concluded its $175m convertible bond late last Thursday through ABN Amro Rothschild.

ABN Amro announced another set of promotions and new hires in its Asian equity division last Friday.