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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.

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.

Bank One's commitment to a 12-year sponsorship of the Chicago Bears may sidestep the curse of stadium naming rights, but the multi-million dollar deal has certainly opened up a few possibilities for jokes. One respondent to the Chicago Sun Times asked: "If the Bears give up a rushing touchdown does that mean there has been a run on the bank?"

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.

Expected improvements in earnings and cash flow has led Standard & Poor's to raise AMR Corp. and subsidiary American Airlines' ratings to B- from CCC. The outlook is negative. The upgrade is based on $1.8 billion of annual concessions over the next five years from an April 2003 agreement with labor groups; about $200 million of added concessions from suppliers, private lessors and creditors; and an additional $2 billion annually through lowered non-labor costs, stated S&P.

Aurora Foods' bank debt slumped last week after the company was rumored to have told banks that it would be unable to make a July interest payment on its bonds. The company also has not yet completed asset sales, which the market originally anticipated in the first half of this year. The loan slipped, trading into the 89-91 context from the 92-94 range, according to dealers. Late last week, the market for the paper was quoted wide in the 89-931/2 range. A trader predicted that Aurora would run into trouble if it could not make its interest payment and could not complete the asset sales, but he suggested a reorganization would be good for the company. "The bonds are underwater, but people think that the bank debt is covered," said another trader.

Vertex Aerospace, an aviation and aerospace technical services company formerly known as Raytheon Aerospace, has added a $43 million piece to its existing senior secured credit facility, increasing senior leverage from 3.5 times to a pro forma 4.2 times, noted Moody's Investors Service. The new loan joins a credit facility comprising a $40 million revolver, a $38 million "A" piece and a $104 million "B" tranche. The add-on was assigned the same rating as the existing bank debt, which carries a B1 rating. The loan, which was two times oversubscribed, was allocated last week and priced at LIBOR plus 4%, according to a banker.

The run-up in secondary prices was put under the microscope as leveraged loan pros looked for reasons and tried to determine whether the valuations are justified. "The market is out of whack," said Pete Vaky, managing director and head of loan syndications at SunTrust Bank, explaining that the demand for loan paper currently exceeds supply. This increased demand is coming from a number of new entrants into the loan market, including new collateralized loan obligations as well as hedge fund participation. Speaking to the growth in the distressed market, Nancy Wilson Brothers, a member of Morgan Stanley's distressed loan and bond sales effort said, "Everyone is getting involved whether they're ready or not."

A $20 million piece of Superior TeleCom is believed to have been auctioned off this week in the 33-35 context. The buyer and seller of the paper could not be determined. One dealer said the most recent auction followed a flurry of trades over the last couple of weeks. The name has been ticking up out of the high 20s and when LMW went to press it was quoted as high as the 35-36 range.