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Banks in Exelon Boston Generating's (EBG) $1.25 billion non-recourse loan facility have started prep work for taking control of the 2,400 MW generation portfolio from sponsor Exelon Corp. by hiring consulting firms to assess the value of the plants. Exelon last week signaled that it is looking to hand the plants back to the banks and will be writing off its $700 million equity investment.

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.

Wyndham International's bank debt slumped in the secondary loan market last week. Traders said the company's "B" loan traded down roughly four points into the 841/2 range from the 881/4 context where it was moving two weeks ago. Pressure on the paper came from market technicals rather than credit fundamentals, the traders explained. There are more sellers than buyers and "storied" names were receiving a dose of pressure last week, one dealer noted.

Moody's Investors Service has placed AFC Enterprises' debt, including its Ba2-rated $275 million credit facility, under review for possible downgrade as the company approaches an August 22 deadline to file its financial results or face a possible technical bank loan default. AFC is currently in the midst of an audit committee investigation and ongoing audit, and has yet to file its annual report for the 2002 fiscal year or complete financial restatement for fiscal years 2001 and 2000. Calls to Gary Hunt, AFC's v.p. and treasurer, were not returned by press time.

AMSTED Industries has leading niche positions in certain vehicular, construction and industrial markets. It is also the market leader in the undercarriage of freight cars in North America, says Standard & Poor's. S&P rated the $525 million credit for the diversified manufacturer of industrial components--primarily to the railroad, vehicular, and the construction and building markets--at BB-. AMSTED's leading market positions are "a reflection of the longstanding customer relationships [that AMSTED has] with multi-year agreements," added Linli Chee, an S&P analyst, explaining that AMSTED has long-term contracts with customers that receive a broad product base, technical expertise and ample manufacturing capacity from the company. AMSTED holds the number one or two positions for most of its products, she noted.

Credit Suisse First Boston, J.P. Morgan and Bank of America are scheduled to launch retail syndication of Zimmer Holdings' $1.75 billion credit this Wednesday. The deal backs the orthopedic product company's approximately $3.22 billion acquisition bid for Centerpulse. The credit went out to managing agents three weeks ago, a banker familiar with the deal said, adding that there has been a positive response so far at this level. He did not cite commitment levels or any new lenders that have joined the facility.

Bank of America pitched a $325 million credit last week for the second largest North American funeral home and cemetery operator, Alderwoods Group. The credit includes a five-year, $275 million "B" loan priced in the LIBOR plus 31/2-33/4% range and a five-year, $50 million revolver, according to Kenneth Sloan, executive v.p. and cfo. Sloan said B of A received positive verbal commitments to the deal both before and coming out of the July 30 meeting. Proceeds from the deal will be used to repay existing debt for Alderwoods and Rose Hills--the Cincinnati-based company's largest subsidiary.

Venture Holdings Company's bank debt is said to have ticked up roughly eight points into the 70-72 range over the last two weeks as bondholders began to buy bank debt claims. Traders said the bondholders are expecting to get a minimal recovery when the company emerges from bankruptcy and are therefore trying to hedge their bets. The identities of the bondholders purchasing the bank debt could not be determined. An attorney involved in the case declined to comment on the progress of the reorganization negotiations. Earlier in July, the bank debt fell out of the 70s range and traded as low as the 62 context with market players suggesting the dip was caused by creditor wrangling.

Calpine Corp.'s recently completed $750 million, four-year term loan traded down into the low 90s last week. Buysiders and dealers said the size of the deal contributed to the pressure on the name. "There's no demand for the paper. Who is going to buy it?" one buysider commented, noting that many accounts are already full of the name. Traders said the second-lien loan was volatile and closely followed the bonds, which were also softer last week. One dealer said paper traded at 931/4 in the Street on Thursday, but another said markets for the paper ranged from the 91 911/2 level to the 93 931/2 context. Calls to Rick Barraza, senior v.p. of investor relations for Calpine, were not returned by press time.

Scotia Capital and Credit Suisse First Boston were wrapping up a refinancing credit for Weight Watchers International (WWI) late last week, with more than $1 billion in tickets committed to the term loan. A banker familiar with the deal explained that the loan could be for a maximum of $463 million, depending on how much of the Woodbury, N.Y.-based weight loss company's bonds are tendered. CSFB and Merrill Lynch are dealer managers and solicitation agents for WWI's current cash tender offer and consent solicitation for all of its $150 million outstanding principal amount of 13% senior subordinated notes due 2009 and all of its E100 million outstanding principal amount of 13% senior subordinated notes, also due 2009. The six-and-a-half-year loan is priced at LIBOR plus 21/4%, the banker added.

Edison Mission Midwest Holdings' loan was the talk of the secondary market last week after pieces of the company's credit traded out of the 90s into the 87 - 871/2 context following a bank meeting two weeks ago. A piece slightly less than $10 million was said to have traded in that range on Tuesday and a similarly sized piece traded in that context two weeks ago this Friday. One trader noted that the company's 10% bonds maturing in 2008 also fell out of bed, trading down to the 75 range from the 93-95 context. The details of the bank meeting could not be determined, but there are rumors that a number of banks are looking to sell, which reminds investors of the Mirant Corp. situation, market players noted. But whether or not commercial banks are ready to bail out of the name is in question, one trader suggested.

Credit Suisse First Boston is said to be looking to hire an analyst for its global leverage finance strategy group. The group, headed by Sam Derosa-Farag has tapped The Succession Group to lead the search, said a source. Derosa-Farag did not return calls and an official at The Succession Group declined comment.