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Warburg Pincus received a welcome reception from the debt markets when raising $695 million in funded debt for its acquisition of TransDigm Holding Co., said Kewsong Lee, managing director at Warburg Pincus. The "B" loan was flexed down 75 basis points and the size of the notes offering was increased after investors favored the structure and pricing, added James Neary, also a managing director at Warburg Pincus.

Merrill Lynch has priced the notes for Franklin Templeton Investment's fourth collateralized loan obligation, the $306 million Franklin CLO IV. The $256 million triple-A tranche is priced at LIBOR plus 55 basis points, said a source. A Merrill Lynch spokesman declined to comment, noting the deal is a private placement. Richard D'Addario, senior portfolio manager at Franklin, was traveling. A spokeswoman did not return calls. The deal is said to have been initiated after reverse inquiry from equity investors in the firm's previous deals (LMW, 4/27). One investor said none of the firm's three previous CLO deals have been downgraded, while the equity returns have been north of 20%.

Owens Corning's bank debt slipped into the 60-62 range from the 65 level last week after the company filed its third amended joint plan of reorganization. The new plan does not provide a proposed settlement value to bank debt lenders for their claims to certain subsidiary guarantees. The basis of the Owens Corning plan calls for substantive consolidation. If the company succeeds in its consolidation efforts, all the assets of the company will be thrown into the same pot to be distributed among the creditors. Lenders' claims to the guarantees would have provided the group with a higher recovery.

The outstanding debt for the new Graphic Packaging Corp., which was recently formed from a merger between Graphic Packaging International Corp. and Riverwood Holding, provides the combined companies with interest rate savings of about $30 million over what they had been paying separately, said Bruce Kirk, Graphic's v.p. of investor relations. The debt backing the merger includes a new $1.6 billion credit, $425 million of 81/2% senior notes and $425 million of 91/2% senior subordinated notes.

Lon Pastuch left Miller Tabak Roberts Securities earlier this month. Pastuch was hired in 2001 to set up the company's distressed loan trading business. The circumstances around his departure could not be determined and Pastuch declined to comment. Joel Miller, Miller Tabak's senior managing director and chief operating officer, confirmed Pastuch's departure. He said the firm is continuing in the loan business, but declined to elaborate.

Wachovia Securities and Bank of America launched syndication last Thursday of a $175 million refinancing credit for Atlanta-based Per-Se Technologies. The credit includes a $125 million, five-year "B" loan and a $50 million, three-year revolver. Proceeds from the deal will go toward refinancing $160 million of outstanding 91/2% senior notes. Exact pricing could not be confirmed on the facility, but the company said in a release that it expects that the new debt will have interest rates in the 5-6% range. In April of 2001, Per-Se completed a $50 million revolver led by GE Capital, priced at LIBOR plus 21/2%. Wachovia and B of A bankers did not return calls.

GE Capital and Lehman Brothers wrapped up a $270 million recapitalization credit for subsidiaries of Tempur World Holdings last week after introducing a pricing grid to the deal. A banker explained that the six-year, $135 million "B" loan is still priced at LIBOR plus 31/2%, as it was when syndication launched. But pricing can step down to LIBOR plus 31/4% if leverage goes below 3.5 times and pricing can go to LIBOR plus 3% if leverage goes below three times, he explained. The mattress and pillow manufacturer presently has debt-to-EBITDA multiples of about four times, he noted.

The Mills Corp. has completed a $500 million credit that helped finance the acquisition of Del Amo Fashion Center and Great Mall of the Bay Area. "The new facility increases financial flexibility and allows The Mills to seize opportunities to grow," said Noam Saxonhouse, v.p. of investor relations for the Arlington, Va.-based real estate investment trust. "If you have the chance to get increased financial flexibility at a low rate, there is no reason not to," he stated. In addition to its recent acquisitions, the company is certainly looking at other opportunities to expand, noted Saxonhouse. "The Mills has a very active development pipeline and an active acquisitions program," he added.

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Pohang Iron & Steel (Posco) this week achieved the highest conversion premium to date for an Asian company. The company sold ¥52bn of Euroyen bonds that give investors the right to exchange into SK Telecom shares at a 52% premium.

The Australian dollar bond pipeline began to pick up again this week, as Commonwealth Property Fund spearheaded a new set of deals with a A$150m October 2004 bond on Wednesday.

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