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Kinetic Concept's recapitalization will add extra debt to the company's profile, but it will help the company to address some liquidity and maturity issues, said Jordan Grant, Standard & Poor's analyst. The company's recapitalization package includes a $480 million, seven-year term loan; a $100 million, six-year revolving credit; a $205 million senior subordinated notes offering and $270 million in convertible redeemable preferred stock. S&P assigned a BB- rating to the new credit and a B rating to the new notes.

Mirant Corp.'s efforts to restrict the trading of its creditor claims to preserve certain tax benefits is causing confusion in the loan market as to which firms are affected by the measure. Traders said the bank debt has virtually stopped trading but some shops believe they can trade the name freely. "We're not going to let that slow us down," said one dealer. But others are more cautious. Investors do not want to trade paper and then find out that the trade will be broken because they are at the end of a chain, which started with a restricted party, another dealer explained.

J.P. Morgan and Bank of America were set to pitch a $1.125 billion "B" loan for Insight Communications' Insight Midwest arm last Thursday, according to senior v.p. and cfo of the company, Dinni Jain. Insight Midwest currently has a $900 million "B" loan, however the tranche will be refinanced with $225 million more in capacity in order to help refinance all of the indebtedness of Insight's Ohio operating subsidiary, Jain said. The entire credit will now total $1.975 billion. The deal also has a $425 million revolver and a $425 million "A" loan. Insight, the ninth largest cable operator in the U.S., will refinance the Ohio subsidiary's $140 million of 10% senior notes due 2006, $55.9 million of 127/8% senior discount notes due 2008 and a $22.5 million credit facility.

Barclays Capital is marketing Gulf Stream II, a $400 million collateralized loan obligation for Charlotte, N.C.-based Gulf Stream Asset Management, according to a source. This will be Gulf Stream's second CLO after Barclays priced the $300 million Compass CLO 2002-1 last year (LMW, 12/15). Price talk on the $310 million triple-A tranche is LIBOR plus 55 basis points and the deal is expected to price next month, a different source added. The CLO is substantially warehoused with loans in the BB range, he said.

Native American tribe United Auburn Indian Community was able to fill out a $92.5 million term loan after receiving a ruling that non-bank entities are allowed to lend to tribes in California. Glenn Christenson, cfo, executive v.p., treasurer and director of Station Casinos, which is the management partner for the federally recognized tribe, said the bank deal was pitched to lenders last fall and raised $142.5 million for the credit from solely bank lenders. Until the ruling was passed, non-bank entities were not allowed to lend to tribes, he said.

Cinram International will use $1.2 billion in bank facilities led by Citigroup and Merrill Lynch to fund the $1.05 billion acquisition of the DVD and CD manufacturing and physical distribution businesses from AOL Time Warner, said Cinram CFO Lewis Ritchie. Merrill advised on the deal. The credit comprises a $150 million revolver and $1.05 billion in term loans with an average tenor of 5.9 years. The revolver will be undrawn when the acquisition closes in the fall, said Ritchie. Citi and Merrill bankers did not return calls.

Conseco's bank debt traded up to the 101102 context last week, beginning with a flurry of paper changing hands in the 99 range. Dealers noted that the accrued interest on the bank debt as well as positive speculation of the value of the preferred equity, which lenders will receive as a part of their recovery package, caused the bank debt to climb over par. Investors have been aware of both factors for some time, but the name ticked up this week as the company draws closer to emerging from bankruptcy, a trader explained. One of the biggest issues in Conseco's bankruptcy case is the appropriate valuation assigned to the company. Under Conseco's fourth amended plan of reorganization, the Carmel, Ind.-based company contemplates a $3.8 billion valuation, explained a Conseco spokesman. The holders of Conseco's trust originated preferred securities allege that the company is worth more. Hearings on the matter have wrapped up and the parties were slated to file post-trial briefs last Friday. The spokesman said he expects the bankruptcy court judge to rule on the company's confirmation shortly after reviewing the briefs. Daniel Murphy, senior v.p. and treasurer of Conseco, could not be reached for comment.

Harold Siegel has joined Highland Capital Management as a managing director, where he will team up with the firm's other new recruit Jack Yang, who joined two weeks ago. Siegel worked with Yang at Merrill Lynch and prior to that they both worked for Chemical Banking Corp. Siegel said his new role at Highland will be in a fundraising capacity. He will focus on growing the firm's asset management business and its institutional capital raising initiatives, according to a statement from Highland.

Karen Halliday, formerly of Deutsche Bank, was scheduled to start work at GE Capital today as a senior v.p. in capital markets services, making her the most recent Deutsche Bank staffer to switch alliances. She will be supporting the global sponsored finance business with William Allen, also a senior v.p. Halliday is reporting to Mary Beth Burnett, managing director, said a GE spokesman. Halliday, who left Deutsche Bank in July 2002, could not be reached. Kevin Burke, a managing director in GE's Capital Markets Group, also an ex-Deutsche Bank banker, joined the firm in April (LMW, 4/14).

Goldman Sachs has issued the red herrings to potential investors in The Carlyle Group's latest loan fund--a $300 million vehicle named Carlyle Loan Opportunity Fund I--that will purchase par, stressed and distressed loan assets, said a banker. The focus is on the non-investment grade bank loan market and is designed for Carlyle to buy loans in the 85-95 range (LMW, 6/9). The red herrings are the first draft of the offering circular and to price talk on the deal will follow shortly, he added. Officials at Carlyle did not return calls and a Goldman banker declined comment.

Pieces of Goodyear Tire & Rubber Company's pro rata pieces changed hands last week. The company's Euro denominated pro-rata tranche traded in the 9495 context and the U.S. pro rata piece was said to have traded in the 92931/2 range. Traders could not pinpoint what had spurred the recent movement in the relatively illiquid paper, but noted that there was increased buyer interest in Goodyear. The tire maker is scheduled to release its second quarter financial results this Wednesday. Calls to a company spokesman were not returned by press time.

Susan Estes, managing director and head of fixed income for North America at Deutsche Bank in New York, has resigned. Estes' decision was predicated on a "desire for a significant lifestyle upgrade," according to an internal memo sent to global markets staffers on July 25 by Charles von Arentschildt, head of global markets America, and Michele Faissola, global head of rates. Estes, reached at work, referred calls to Harriet Benson, spokeswoman, who declined comment. Faissola was traveling and could not be reached. Calls to von Arentschildt were not immediately returned.