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Mandalay Resort Group, a casino resort operator, has entered two interest rate swaps, totaling USD475 million and maturing in December 2005 and in February 2006, which take the view that interest rates will not rise as rapidly as the curve is predicting in the short-term. Les Martin, v.p. and chief accounting officer in Las Vegas, said the fixed-to-floating swaps were tied to debt issues for accounting regulation reasons.

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.

Citigroup is slated to shop an $875 million deal backing Pharma Services Holding's cash buyout of pharmaceutical research and marketing firm Quintiles Transnational Corp. for $1.7 billion next month. The deal would pile on bank debt for a company that currently has very little debt, noted David Lugg, analyst for Standard & Poor's. A banker noted that the potential surge in debt multiples--from one time to 4.7 times--would be an important point to consider while looking at the credit. Structure and pricing for the deal is still to be determined, according to bankers. A spokeswoman for Quintiles noted the entire transaction should close in the third quarter. The credit will fund the acquisition along with $415.7 million in equity from One Equity Partners--the private equity arm of Bank One--and $586 million of Quintiles cash. One Equity Partners co-founded Pharma Services with Quintiles' founder Dennis Gillings.

Is Michael Weir, Morgan Stanley's par loan trader, leading a double life? Well, not really, but the market took to haggling him this week about his Masters Tournament-winning name sake. "This is an unbelievable feeling, a thrill. I'm having a tough time putting it into words. I probably couldn't do it justice," said trader Weir, echoing the words of the pro golfer.

Speculation that Xerox Corp. is staking out some type of debt refinancing has pushed the bank debt about two points higher over the last couple of weeks. "The company has stated that it will be opportunistic about accessing the capital markets," said one analyst. The current buzz anticipates that a new debt package will likely consist of new bonds and a bank debt refinancing. As LMW went to press last Thursday, the market for Xerox's revolver was quoted in the 94 1/2 context, its "A" piece was in the 97 97 1/2 range, and the "B" loan was quoted as high as the 99 level. J.P. Morgan and Bank One lead the bank deal that was revamped last June.

Owens-Illinois is working up a $2.1 billion refinancing credit that is set to emerge in the near future as the company seeks to tackle a maturing $2.45 billion debt load. The exact date of the deal's launch could not be confirmed, but bankers said it is anticipated very soon. Deutsche Bank, Bank of America, Scotia Capital, Citigroup and Bank One are the expected leads on the deal. The expected structure should shape up as a $600 million "B" loan with price talk in the LIBOR plus 31/2-4% range, a $750 million "A" piece in the LIBOR plus 3-31/2% range, and a $750 million revolver ranging from LIBOR plus 21/2-3%. A banker familiar with the deal said the structure and terms are not yet final.

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.

Oxford Health Plans' $450 million credit oversubscribed last Thursday after Bank of America and Credit Suisse First Boston added a 25 basis point upfront fee to the $400 million "B" loan. A banker familiar with the situation said the deal attracted more than 35 ticket holders with pricing on the $400 million "B" loan set at LIBOR plus 23/4%. The banker said the six-year loan landed at the high end of the initial LIBOR plus 21/2-23/4% price talk because of investors' demands for the rate. The five-year, $50 million revolver--priced at LIBOR plus 21/4% with a commitment fee of 50 basis points--was oversubscribed, he added. Gary Frazier, senior v.p. of investor relations at Oxford Health, declined to comment.

A $1.25 billion power loan for Richmond, Va.-based Dominion has hit the market using base pricing derived from traded bonds, according to sister publication Power, Finance & Risk. Syndication for the facility was launched last Tuesday by leads J.P. Morgan and Barclays Capital. Instead of adopting the standard LIBOR plus a fixed basis point spread, the drawn pricing on the facility will be LIBOR plus the average asset swap spread on a defined publicly traded bond. That spread will be determined by getting market dealer quotes on the bonds. Calls to J.P. Morgan were not returned. Officials at Barclays declined comment and Dominion spokesman Mark Lazenby was unable to provide comment by press time.

Van Kampen Funds is looking to fold its Senior Floating Rate Fund into its Prime Rate Income Trust and rename the combined fund, the Van Kampen Senior Loan Fund. The firm wants to merge the smaller $265 million Senior Floating Rate Fund into the $2 billion Prime Rate Income Fund to reduce operating expenses, according to a Van Kampen spokeswoman. Since both funds have similar investment strategies, it makes sense to merge the smaller portfolio, she said. "The Board anticipates that shareholders will benefit from a reduced overall operating expense ratio in the combined fund as well as increased diversification of assets," according to a filing with the Securities and Exchange Commission.