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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.

Thomas Fitzpatrick, Centennial Communication Corp.'s cfo, was receptive last week to suggestions from the market that his counterparts at rivals such as Nextel Communications and American Cellular buy him a drink following the success of the Centennial bond offering that lifted levels for wireless names (see story, page 4). "I'm always glad to help out," he said.

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.

J.P. Morgan has priced the notes for PIMCO's latest collateralized loan obligation, Waveland INGOTS. The AAA notes for the $350 million cash flow deal are priced at LIBOR plus 55 basis points, which is at the tight end of recent spreads. PIMCO has managed 24 cash flow CDOs, 14 of which are invested in high-yield assets, according to Fitch Ratings. Calls to PIMCO officials were not returned.

Reader's Digest is in the process of negotiating a covenant change on its credit facility, said a company spokesman. Reader's Digest acquired Reiman Publications for $760 million in cash in the fourth quarter of fiscal 2002 and the Pleasantville, N.Y.-based company financed the deal with bank debt. J.P. Morgan and Goldman Sachs lead the loan that includes a $600 million "B" piece. Debt levels reached as high as $950 million, said the spokesman.

Roadway Corp.'s BBB corporate credit rating has been placed on watch with negative implications by Standard & Poor's. The outlook revision stems from concerns over Roadway's continuing economic softness and potential debt-financed acquisitions to expand subsidiary Roadway Next Day Corp. The Akron, Ohio-based company has a $150 million revolver and a $175 million term loan both due in 2006, and $225 million of 81/4% senior secured notes due in 2008. Roadway will be scheduling a meeting with S&P, and expects to resolve this in a satisfactory manner from their perspective, said Dawson Cunningham, executive v.p. and cfo of Roadway.

Despite attempts over the last 18 months by trading desks to develop a market for shorting bank debt, the idea is now on the backburner, according to bankers and investors. Goldman Sachs is the only bank that put together a detailed proposal for shorting bank debt, though Wall Street rivals are said to have looked at the concept. But the illiquidity in the bank market and questions over the economics proved too much of a burden, sources said. Bankers at Goldman referred questions to a spokeswoman, who declined comment, and traders at rival desks including J.P. Morgan and Credit Suisse First Boston also declined to comment on whether they have offered a short-sell product.

A groundbreaking collateralized loan obligation underwritten by Citibank for TCW is now being shown to equity and debt investors in CLO vehicles, who said they are eager to be in on the deal. One source said the $500 million TCW Pro Rata CLO could even be increased. "The deal is now coming down the home stretch and is likely to be a third quarter event," said the source, who added that the idea has been almost two years in the making. The vehicle is the first cash-flow CLO that predominantly invests in pro rata debt (LMW, 2/3). Officials at TCW declined comment and credit derivatives bankers at Citi did not return calls.

Wackenhut Corrections Corp.'s heightened leverage is the biggest concern for Moody's Investors Service, which has given a Ba3 rating to the company's new $150 million credit facility. Proceeds from the deal will go toward financing the correctional facility company's purchase of all its shares currently held by majority shareholder Group 4 Falck, a Danish security firm. "The transaction weakens the company's profile because it increases its total leverage [and] it also reduces the fixed charge coverage on their debt," said Philip Kibel, v.p. and senior credit officer at Moody's. But the repurchase of the Group 4 Falck's ownership is a significant benefit for Wackenhut. "They will become a fully independent company now [with] operating autonomy," Kibel said.

The $100 million "B" loan for Worldspan, a travel reservation data company, was oversubscribed last week. There was early speculation that investors might not take to a credit for a company related to the ailing air travel industry, but buysiders oversubscribed the deal in under a week. Lehman Brothers and Deutsche Bank lead the facility. The $150 million credit for the Atlanta-based company backs the acquisition of Worldspan by Travel Transaction Processing Corp., a company formed by Citigroup Venture Capital Equity Partners--a private equity fund managed by Citigroup Venture Capital--and Teachers' Merchant Bank, the private equity arm of Ontario Teachers' Pension Plan. The private equity entities are buying Worldspan from Delta Air Lines, Northwest Airlines and American Airlines.

Several of the lead banks on Xerox Corp.'s $1 billion credit facility were said to be offering the $700 million revolver at a steep discount shortly after allocation last week, with offers in the high 80s to low 90s. Bankers and investors said of the six underwriters, Citigroup, Deutsche Bank, Goldman Sachs, J.P. Morgan, Merrill Lynch and UBS Warburg, several were seen offering the revolver at these levels. One investment bank was rumored to have sold off between $50-75 million of the loan. A Xerox spokeswoman declined comment and officials at the lead banks either declined comment or did not return calls by press time.

Wachovia Securities has priced the debt for Callidus Capital Management's debut loan deal, a $300 million cash flow vehicle called Callidus Debt Partners CDO Fund II. The CLO uses the Wachovia APEX structure, which differs from traditional CDOs in that it includes three swaps entered into between Wachovia and the fund. The deal is also unusual in that the $246 million of AAA notes were wrapped by AMBAC Asset Assurance. The notes were priced at LIBOR plus 50 basis points, said a source. But the charge for the wrap from the insurer was not included in this, he said, and this will probably cost in the region of 20 basis points. Officials at Callidus declined comment until the vehicle closes at the end of this month.