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The introduction of popular direct elections signals the end to the old authoritarian rule.

Just as Indonesia seemed to be recovering from its last setback – the Bali bombing of 2002 – another terrorist incident has shaken confidence in the country. But this time the fundamentals are stronger, says Maggie Ford.

The introduction of popular direct elections signals the end to the old authoritarian rule.

How does one explain Bain Capital's latest acquisition of Bombardier's jet ski and snowmobile business? Followers of Massachusetts Governor and Bain founder Mitt Romney could have spotted his support for Bombardier's products some time ago. The Canadian firm supplied all of the ATVs and snowmobiles for the 2002 Salt Lake City Olympic Games, which Romney directed. Even better, earlier this summer, Romney and his sons used their jets skis to rescue a family of six whose boat capsized on a New Hampshire lake. It could not be determined if the jet skis were from Bombardier.

This chart, provided by Citibank/Salomon Smith Barney Inc., tracks bid-ask prices for par credit facilities that trade in the secondary market. It also tracks facility amounts, ratings, pricing and maturities.

The Kerr Group completed a $245 million credit that was increased after $40 million in lined-up mezzanine financing was dropped. "With the strength of the bank market, we upsized by $40 million...and took out the mezzanine completely," explained David Lorsch, a principal at Kerr's equity sponsor firm Fremont Partners. He did not provide details on the mezzanine debt. The credit refinanced the Lancaster, Pa.-based company's existing facility and backed its acquisition of the operating assets of the Setco and Tubed Products subsidiaries from McCormick & Co.

Goldman Sachs is leading a $300 million collateralized loan obligation for insurance giant AIG. The deal, which has been warehousing loans for almost a year, is called Galaxy 2003, said a source. He said the notes are currently being marketed to investors in CLOs and the deal is likely to wrap up late September or early October. The source said the manager is approximately two-thirds warehoused with the majority of the deal bought prior to the contraction of spreads during the summer.

The recently issued bank debt from International Steel Group (ISG) slumped slightly in the secondary loan market after the company reported weaker numbers to investors. The bank debt, which had been trading in the 1001/4 1003/8 context, dipped under par and was quoted in the 981/2 993/4 range by the end of last week. Leonard Anthony, ISG cfo, said results had softened due to factors that affected the steel industry as a whole. He declined to provide specifics, noting that the company is currently pursuing an initial public offering. "Everyone in that space saw those kind of results relative to expectations," noted one buysider.

CIBC World Markets and Bank of America allocated the term loan "B" for Jarden Corp. last week that backs the $155 million acquisition of Lehigh Consumer Products Corp. The branded consumer products manufacturer and distributor decided to delay a further acquisition, which led to a downsizing of the loan, explained Ian Ashken, Jarden's cfo. The $215 million delayed-draw "B" loan was converted into a $150 million fully-funded loan. "We originally were going to do a two-stage, but as part of the loan document, there is a [green] shoe that will allow us to go back and do another acquisition within six months," Ashken added.

Merrill Lynch has fully underwritten a debt financing package of more than $700 million, backing the $880 million buyout of Bombardier's recreational products business by Bain Capital, the Bombardier family and the Caisse de depot et placement du Quebec. A banker said Merrill will syndicate a revolver, term debt and a bond deal after Labor Day, but the structure, pricing and leverage have not yet been decided. The revolver will be Canadian dollar denominated, but the senior and sub debt will be U.S. dollar denominated, the banker added. Merrill acted as an advisor to the investor group, explained the banker.

Patterson Dental Co. has tapped Bank One and Bank of America to lead the debt financing to back the $575 million acquisition of AbilityOne Products Corp., according to Stephen Armstrong, cfo of Patterson. He said Patterson will likely use a bridge loan to close the transaction, and that he expects to have the permanent structure of the financing in place within six to 10 weeks after the close. AbilityOne is a rehabilitative supplies distributor to the physical therapy market.

Rayovac Corp. is planning a $50 million add-on to an existing $300 million "B" loan to fund the acquisition of electric shaver and personal care company Remington Products Co., according to Randall Steward, Rayovac cfo. The Madison, Wis.-based battery producer will also issue $300 million in senior subordinated notes to fund the balance of the $322 million acquisition. Steward declined to comment further on the financing, saying that the additional credit has not yet been finalized.