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BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

Trading on the brain? Whether he's making the trade, or setting a drink meeting, it's good to know that one trader always has his mind on the job. In response to a recent invitation, the trader said, "I think that I could free up some capacity some time soon."

Market players were buzzing last week over the status of the financing for the $1.7 billion buyout of Quintiles Transnational Corp. by Pharma Services Holding. The originally proposed $390 million bank deal included in the financing package was launched in early June and is still encountering turbulence on the road to completion, according to buysiders and bankers. "The deal is hung out there and [lead bank Citigroup] is trying to figure out if they can price guys in," said a banker familiar with the deal. "That [deal] has struggled and kind of died away," an investor added, stating that the facility is one of a few, if not the only credit that has not fared well in the current issuer-friendly environment. He said Citi was "re-tooling" the credit to make it more appealing to the buyside, but the exact status of the credit could not be confirmed and Citi bankers declined to comment on the situation. James Bierman, cfo of Quintiles, Greg Connors, senior v.p. of investor relations, and a spokeswoman did not return repeated calls.

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.

Credit Suisse First Boston has priced the notes for Credit Suisse Asset Management's CSAM Funding III collateralized debt obligation. The $401 million deal was initially slated to be $350 million but was increased due to investor demand, said a source. The $292.5 million AAA tranche priced at LIBOR plus 58 basis points. The top rated tranches on recent deals are reported to have priced at LIBOR plus 55 basis points, but one manager disputed this.

Exide Technologies bank debt has been slightly stronger over the last month as the company nears emergence from bankruptcy. The company's term loan "B" was said to have traded in the 63-64 context. This is up from the 57 591/2 context where it was quoted a month ago, according to LoanX. One trader said there are a lot of potential buyers of the paper, but not many sellers. He noted that increased mergers and acquisition activity in the sector is adding to interest in the name.

Mirant Corp. bank debt plummeted after the company filed for bankruptcy last Monday, but recovered somewhat once lenders began to assess the true worth of their claims, which could include potential net-backs from unfunded letters of credit. The company's $1.125 billion credit facility maturing in July 2005 sunk into the low 50s before recovering about 20 points to the 68-70 range. Market players explained that the majority of claims against the facility were letters of credit. One of the possibilities is that the letters of credit support the company's energy trading book, which could be less of a liability than expected, they said.

NBTY's dominant competitive position in the vitamin, mineral and nutritional supplement industry is an advantage for the Bohemia, N.Y.-based company as it plans to acquire Rexall Sundown from Royal Numico for $250 million. Moody's Investors Service rated the $375 million credit that is backing the transaction at Ba2. NBTY also has strong pro forma credit metrics, vertical integration, a proven track record from successful integration of past acquisitions and a diversity of customers and products, Moody's states. The Rexall deal is consistent with NBTY's strategy to strengthen its wholesale business by increasing revenues from existing customers, adding new customers and by expanding its product portfolio, according to the ratings agency.

Nellson Nutraceutical has sealed a $285 million credit facility for its acquisition of Montreal-based Bariatrix Products International. The deal comes after Nellson, which makes nutrition bar and powder products, completed a $160 million deal in conjunction with its acquisition by private equity firm Fremont Partners last fall (LMW, 11/18). The new deal also refinances this previous credit.

A slew of high-yield deals backing European leveraged buyouts are seeing unprecedented support because of a reworking of the capital structure treatment of bank loans and bonds. A deal for Focus Wickes is the latest transaction to address the concerns of high-yield investors--who want the same rights as other creditors through direct contractual subordination--and the banks' desire to keep the high-yield investors out of the restructuring process, said Edward Eyerman, analyst for Fitch Ratings.