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A few banks were rumored to be holding out on approving a two-year extension sought by Calpine Corp. for $1 billion of revolving credit capacity that was initially set to expire last Friday. The holdouts could not be determined. Traders said Calpine received a three-week to one-month extension for the revolvers until a more permanent solution can be worked out. The delay in getting the full two-year extension could be a reason why market rumors suggested banks were holding out as the company needs to receive 100% approval for the extension. "In a situation like this [lenders] feel empowered to ask for everything," noted one dealer. Rick Barraza, senior v.p. of investor relations for Calpine, said the company is still working with its lenders but he could not comment on the specifics of the bank deal.

CIT Business Credit, a unit of the CIT Group that provides asset-based financing, is looking to provide $1 billion in exit financing to companies that are seeking to emerge from bankruptcy this year, according to LMW sister publication Corporate Financing Week. CIT is also looking to grow its distressed mergers and acquisition and leverage buyout financing capabilities to compensate for an expected decline in demand for debtor-in-possession financing in the second half of the year, said Mitchell Drucker, senior v.p. at CIT Business Credit. The firm is eyeing companies like WorldCom, Federal-Mogul, ANC Rental Corp., the bankrupt owner of Alamo Rent A Car and National Car Rental, and United Airlines as prospective clients, he said, noting that the firm is not yet in discussions with these companies.

CIT Business Credit, a unit of the CIT Group that provides asset-based financing, is looking to provide $1 billion in exit financing to companies that are seeking to emerge from bankruptcy this year, according to LMW sister publication Corporate Financing Week. CIT is also looking to grow its distressed mergers and acquisition and leverage buyout financing capabilities to compensate for an expected decline in demand for debtor-in-possession financing in the second half of the year, said Mitchell Drucker, senior v.p. at CIT Business Credit. The firm is eyeing companies like WorldCom, Federal-Mogul, ANC Rental Corp., the bankrupt owner of Alamo Rent A Car and National Car Rental, and United Airlines as prospective clients, he said, noting that the firm is not yet in discussions with these companies.

Cross Country Health, a provider of temporary healthcare staffing, has a strong track record in its industry as well as a good competitive position, but the company's operating focus is not diversified. This lack of diversity makes the company more vulnerable to material adverse changes, such as a shift in regulation, contributing to Standard & Poor's BB- rating to Cross Country's new $200 million credit facility. The facility includes a $125 million "B" term loan and a $75 million revolver.

Carbon compound and forest products producer Koppers completed a $175 million refinancing deal, adding five new lenders in the process. The new syndicate members were added to the facility after bankers from Mellon Bank--a lead arranger on the previous deal--joined new institutions, but kept in touch with the company, said Donald Davis, v.p. and cfo of Koppers. "More than half [of the lenders] were new, but all have bankers at their institutions that know the company," he stated. He did not name the new lenders. The new leads are PNC Bank and National City Bank. "We selected them because they understand the regional needs of our company," he said. Pittsburgh-based Koppers was looking for good pricing and a strong relationship, Davis added.

GE Structured Finance and affiliates of Oak Hill Advisors have won the lead roles on the new $195 million credit for SBA Communications Corp.'s SBA Telecommunications subsidiary. The new facility replaces the company's $300 million credit led by Lehman Brothers and Barclays Capital. "Their offer was more appealing to us," said Pamela Kline, v.p. of capital markets at SBA, of the switch to GE and Oak Hill. Kline declined to elaborate on what provisions set the new leads apart. Spokeswomen for Lehman and Barclays declined comment.

Regal Entertainment Group's $315 million term loan "D" was heavily oversubscribed, only days after launching into syndication last Tuesday. One buysider said the deal had $900 million in commitments by the end of last week and that pricing had been flexed downwards 25 basis points to LIBOR plus 21/2%. The deal is part of a recapitalization that will provide investors in its 2002 reorganization a special dividend of between $600-625 million without selling stock. Colorado billionaire Philip Anschutz owns about 77% percent of Regal's voting stock. Knoxville, Tennessee-based Regal also indicated it is selling $200 million in convertible notes and could sell up to $40 million more after heavy demand.

More than 120 traders and investors turned out for Loan Market Week's Best Trading Desk Awards ceremony at the New York Palace Hotel on May 15. In addition to the 14 awards that were handed out, war stories and industry gossip were traded until the crowd was cast out by Palace staff and moved the party to another local watering hole. The following photos were taken by Maya Hayuk and Institutional Investor News' Rozalind Dineen. For a full writeup of the awards, see last week's special supplement or go to http://www.loanmarketweek.com/.

Bank One has won the lead role on Churchill Downs' new $200 million revolving credit facility over the incumbent PNC Bank. The company sought bids for the new facility on a competitive basis, said Michael Miller, cfo of Churchill Downs, explaining the switch. Miller declined to elaborate on Bank One's proposal. But he commented that the company looks for its lead bank to be an aggressive agent, seeking the best pricing and covenant flexibility. PNC still participates on the deal as letter of credit issuer and syndication agent. "We still have a great relationship with the company and still play a material role with the company's banking needs," said a PNC spokesman.

Lyon Capital Management, an arm of Credit Lyonnais that manages loan assets in structured vehicles, has raised the debt for its first $325 million cash-flow arbitrage collateralized loan obligation called LCM Limited Partnership I. Goldman Sachs and Credit Lyonnais are joint underwriters for the cash-flow arbitrage vehicle, said a source. Officials at Lyon referred calls to a Goldman Sachs banker, who did not return calls. The spread on the $201.5 million triple-A tranche is LIBOR plus 55 basis points. The $30 million triple-B is LIBOR plus 350 basis points and the equity piece is $30 million.

The AAA notes of Callidus Capital Management's first collateralized loan obligation will be wrapped by AMBAC Asset Assurance. The move is significant because insurers such as AMBAC, MBIA and Financial Security Assurance (FSA) have until recently put a freeze on wrapping CDO tranches and now appear to be dipping their toes back into the market. Ares Management also took a wrap from FSA on its latest deal, Ares VII CLO, which priced last month. "We are participating more selectively in the market," said Betsy Castenir, FSA's spokeswoman. She could not provide figures for activity and spokespeople at AMBAC and MBIA did not return calls. Officials at Callidus declined comment and Ares portfolio managers did not return calls. Wachovia Securities is preparing to price the notes for the Callidus deal next month.

The Shared National Credit exams are underway but analysts and traders expect there to be less credit deterioration compared to previous years, putting less pressure on banks to sell off their non-performing assets. A direct link between SNC exams and trading in the secondary market is tenuous, but there were at least some big trades last year attributed to the SNC process. "Banks do sell when their [non-performing assets] are skyrocketing," one trader noted. But one dealer said banks were not as pressured in today's environment and that it was more of an issue last year.