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Charter Communications inched up toward 89-90 after the company announced that Paul Allen, principle owner of the cable company, has offered to provide a $300 million credit line to assist Charter in meeting certain covenants under its existing credit facilities. "What everyone wants to see is that Paul Allen is supporting the credit," said one trader of the uptick in the name. While the company is currently in compliance with all its covenants, one analyst speculated that the Allen credit might be put in place to give Charter's auditors comfort that the company has a cushion for at least another year. Charter paper traded in the 87 1/2 context two weeks ago.

Credit Suisse First Boston and Citibank pitched Laidlaw's $825 million bank debt exit financing to investors last Thursday as the company makes plans to emerge from bankruptcy this month. The deal includes a five-year, $525 million "B" piece with price talk in the LIBOR plus 31/2% range and a six-year, $300 million revolver priced at LIBOR plus 3%. A commitment fee of 50 basis points is also being offered on the revolver. A $350 million bond deal is also coming to market as part of the exit financing. Laidlaw, a school and inter-city bus company, filed for Chapter 11 in June 2001. Investors said the deal could be attractive, considering Laidlaw's stable transportation business. CSFB and Citi bankers and Geoff Mann, treasurer and v.p. of Laidlaw, did not return calls.

Bank of America and Credit Suisse First Boston are shopping a $450 million credit for Oxford Health Plans with the proceeds from the term loan funding a $208 million obligation on a $225 million settlement for a class action lawsuit. The new bank debt will also refinance $120 million of existing debt. The BB+ rated credit was launched to the market on April 1, a banker said. The $50 million, five-year revolver is priced at LIBOR plus 21/4% with a 50 basis point commitment fee, while the six-year, $400 million term loan has a spread of LIBOR plus 21/2-3/4%.

Texas Industries, a Dallas-based construction-materials company, is undergoing weak operating performance in a bleak business environment that has resulted in a downgrade and a review for further possible action by Moody's Investors Service. The agency will look at the company's ability to refinance or complete amendments, which, beyond its bank waivers until May, would allow it to more permanently meet its financial covenants. "We're in negotiations with our banks," said Ken Allen, v.p. and treasurer. Moody's anticipates that the rising costs of energy and raw materials will limit the improvement of Texas' near-term performance, creating a shortfall in cash flow that could make it difficult for the company to comply with financial covenants. The company's guaranteed senior unsecured revolver rating fell to Ba3 from Ba2.

AUSTRALASIA Australia Newcrest Mining, through its financing arm Newcrest Finance, has finalised funding for the Telfer Gold Mining Project after six banks completed a A$575m six year club deal. Arrangers are: National Australia Bank committing A$150m, Westpac Banking Corp investing A$125m, Commonwealth Bank of Australia and ANZ Investment Bank lending A$100m each and HSBC and SG taking A$50m apiece. Proceeds are to fund the construction, development, commissioning and operation of the Telfer Gold Mine located in Western Australia. The project received approval after completion of the feasibility study in October 2002 and approval from the board in November 2002. Arranger Barclays Capital has completed the A$700m extension facility for Qantas Airways. The facility is an extension of the core A$300m 364 day, A$300m three year and A$100m five year syndicated standby tranches of the A$2.1bn deal that was signed May 2001. For the 364 day portion and three year tranche banks committed equal amounts to both tranches. National Australia Bank contributed $36.96m, Barclays A$26.7m, Citigroup, Commonwealth Bank of Australia and JP Morgan A$21.69m apiece, ABN Amro, ANZ Investment Bank, Deutsche Bank, HSBC, Sumitomo Mitsui Finance Australia, WestLB and Westpac Banking Corp A$17.41m each and BNP Paribas, Mizuho Corporate Bank and SG Australia A$16.45m apiece. For the five year tranche National Australia absorbed A$12.32m, Barclays A$8.9m, Citigroup/SSB, Commonwealth Bank of Australia and JP Morgan A$7.23m apiece and ABN Amro, ANZ Investment Bank, BNP Paribas, Deutsche Bank, HSBC, Mizuho Corporate Bank, SG Australia, Sumitomo Mitsui Finance Australia, WestLB and Westpac Banking Corp A$5.8m each. Tranche 'A' Size: A$300m Type: 364 day revolving credit Margin: 55bp over BBSY Commitment fee: 15bp Tranche 'B' Size: A$300m Type: Three year revolving credit Margin: 65bp over BBSY Commitment fee: 25bp Tranche 'C' Size: A$100m Type: Five year revolving credit Margin: 65bp over BBSY Commitment fee: 25bp Arranger: Barclays Capital ASIA China Co-ordinating arrangers SG Asia, BNP Paribas, Bumiputra Commerce Bank, Crédit Lyonnais, Den norske Bank and ICBC have closed the $131.16m 10 year ship financing for China Ocean Shipping (Cosco). Arrangers are Industrial Commercial Bank of China, NordLB, China Construction Bank and Guangdong Development Bank. Proceeds are to buy three new container ships. Signing is in mid-April. Size: $131.16m Type: 10 year term loan Margin: 115bp over Libor Co-ordinating arrangers: SG Asia, BNP Paribas, Bumiputra Commerce Bank, Crédit Lyonnais, Den norske Bank, ICBC Fees: Arrangers - 50bp for $50m or more Senior lead managers - 43bp for $10m-$49m Purpose: Ship financing Hong Kong Syndication of PCCW's HK$3.003bn financing may be delayed for a week due to the pneumonia outbreak in Hong Kong. Arrangers HSBC, Bank of China, Hang Seng Bank, Agricultural Bank of China, Crédit Agricole Indosuez and Standard Chartered aim to close the deal next week. The HK$200m facility for Samson Paper has been increased to HK$260m after the deal was oversubscribed with banks committing a total of HK$295m. Arranger Development Bank of Singapore committed HK$30m, with co-arrangers China Construction Bank, Industrial and Commercial Bank of China (Asia) and Jian Sing Bank pledging $27m apiece. Lead managers are Bumiputra-Commerce Bank investing HK$23m and Bank of Taiwan, ING, International Bank of Taipei, Taipei Bank, UFJ Bank, United World Chinese Commercial Bank and Wing Hang Bank providing HK$18m each. Proceeds are to repay short term borrowings and for general corporate purposes. Signing is in Hong Kong in mid-April. Tranche 'A' Size: HK$130m Type: Three year term loan Tranche 'B' Size: HK$130m Type: Three year revolving credit Margin: 100bp over Hibor Arranger: Development Bank of Singapore Fees: Co-arrangers 65bp for HK$30m or more Lead managers 55bp for HK$20m-HK$29m Purpose: General corporate The HK$200m five year term loan for Barson Development, guaranteed by parent Café de Coral, has been completed with eight banks joining the transaction. Arrangers include BNP Paribas, Bank of China (Hong Kong), Crédit Agricole Indosuez, Standard Chartered and Wing Lung Bank providing HK$33.4m apiece. Managers are Mizuho Corporate Finance, Sumitomo Mitsui Banking Corp and UFJ Bank (Hong Kong) committing HK$11m each. Proceeds are for working capital purposes. Signing took place in Hong Kong on March 31. Size: HK$200m Type: Five year term loan Margin: 52bp over Hibor Arrangers: BNP Paribas, Bank of China (Hong Kong), Crédit Agricole Indosuez, Standard Chartered, Wing Lung Bank Frontend fee: 50bp Purpose: Working capital Korea Arrangers of the $200m two and three year credit for Korea Development Bank say syndication is progressing smoothly and they have received commitments from several banks. A couple more are due in before the deal closes next week. Arrangers have completed the $180m three year term loan for Hana Bank, selling down a total of $8m to three joining banks. For the one year portion arranger Barclays Capital, Citigroup/SSB and Standard Chartered contributed A$21.5m each, Development Bank of Singapore A$16.5m, LB Kiel and Sumitomo Mitsui Banking Corp $11.5m apiece and BayernLB $10m. Manager Export-Import Bank of the Republic of China (Taipei) took $3m. For the two year tranche, arranger Wachovia Bank injected $21.5m, BayernLB $11.5m, LB Kiel and Sumitomo Mitsui Banking Corp $10m each. Manager Sampo Bank took $3m. For the three year term loan, Commercial Bank of Greece joined as a manager committing $2m. The limited selldown is no surprise given market sentiment in Korea. Signing took place in Seoul on April 1. Tranche 'A' Type: One year term loan Margin: 15bp over Libor Fees: Co-arrangers - 10bp for $10m or more Lead managers - 9bp for $5m-$9m Managers - 8bp for $2m-$4m Tranche 'B' Type: Two year term loan Margin: 23bp over Libor Fees: Co-arrangers - 24bp for $10m or more Lead managers - 22bp for $5m-$9m Managers - 20bp for $2m-$4m Tranche 'C' Type: Three year term loan Margin: 33bp over Libor Fees: Co-arrangers - 36bp for $10m or more Lead managers - 33bp for $5m-$9m Managers - 30bp for $2m-$4m Size: $180m Arrangers: Barclays Capital, BayernLB, Citigroup, Development Bank of Singapore, LBKiel, Standard Chartered, Sumitomo Mitsui Banking Corp, Wachovia Bank Repayment: Bullet Purpose: Working capital Malaysia IOI Corp Bhd has awarded a mandate for the refinancing of its Eu230m bridge facility to Citigroup. The five year loan will feature an amortising repayment schedule with an average life of 3.55 years although no pricing has been finalised yet. The original deal paid a step-up margin of 110bp for the first six months and 130bp thereafter with the increase set to occur this May 14. Fees to the market were 5bp for tickets of Eu50m or more. Proceeds financed the purchase of Loders Croklaan, a leading supplier of specialty oils and fats. Launch is expected in the next few days. Singapore Huan Hsin Holdings has awarded a mandate to OCBC to arrange a $30m five year term loan. The borrower produces and supplies telecoms, IT-related, consumer electronics and electrical products and components to original equipment manufacturers (OEMs). Proceeds are for working capital purposes. Details are being finalised before launch next week. Arrangers HSBC, NordLB (Singapore) and Standard Chartered Bank are waiting for official commitments from banks before closing the S$200m fundraising for CapitaLand Commercial. Thailand Standard Chartered has held presentations in Bangkok for a Bt4bn two year term loan for Digital Phone, a GSM network operator. The facility will refinance an existing Bt6.22bn equivalent fundraising divided between a Bt5.45bn portion and an $18m tranche. Banks earned margins linked to a debt to Ebitda grid. For the baht tranche, lenders were paid margins ranging from a floor of 260bp to a ceiling of 325bp. In the US dollar portion, margins ranged from a low of 100bp to a high of 145bp. Banks that participated in the previous fundraising were invited to attend the presentation. If they commit to this facility they will receive a fixed rate margin of 325bp. Responses are due by April 10. Size: Bt4bn Type: Two year term loan Arranger: Standard Chartered Margin: 325bp fixed rate Purpose: Refinancing Taiwan Universal Scientific has awarded separate mandates to Chinatrust Commercial Bank for a NT$1.5bn three year revolving credit and to Citibank (Taipei) for a $45m three year term loan. Banks receive a margin of 95bp over the CP fixing rate for the NT$1.5bn fundraising. Pricing details are being finalised for the $45m equivalent deal. The borrower last tapped the market guaranteeing a $100m equivalent fundraising for Huntington Holdings International and USI International, wholly owned subsidiaries of the borrower, in December 2000. That facility was divided between a $41m revolver paying a margin of 80bp over Libor, a NT$1bn guarantee facility with a guarantee fee of 80bp and a NT$1bn revolving credit paying a margin of 80bp over the CP fixing rate. Proceeds are for working capital purposes. Both facilities will be launched next week. International Commercial Bank of China has launched a NT$2.65bn 15 year fundraising for Onyx Ta-Ho Environment. The facility is divided into a NT$2.35bn term loan and a NT$300m guarantee facility. For the term loan, banks will earn a margin priced over the CEPD rate that begins at 140bp for the first five years, falls to 100bp between year six to year 10 and then to a low of 80bp for the remaining five years. Banks will earn an 80bp guarantee fee for the guarantee facility. Fees are set at a single level with participants earning 5bp for commitments of NT$150m. The borrower last came to the market in December 2002 with a NT$1.6bn fundraising arranged by Chinatrust Commercial Bank. The facility was divided between a NT$1.5bn 15 year term loan paying a margin ranging from 115bp to 60bp over the postal savings deposit rate and a NT$100m 15 year guarantee facility with a fee of 80bp. Proceeds from the latest facility are for the construction of an incineration plant in Yin Lin in Taiwan. Tranche 'A' Size: NT$2.35bn Type: 15 year term loan Margin: 140bp over CEPD (years one to five), 100bp over CEPD (years six to 10), 80bp over CEPD (years 11 to 15) Tranche 'B' Size: NT$300m Type: 15 year guarantee facility Guarantee fee: 80bp Arranger: International Commercial Bank of China Frontend fees: 5bp for NT$150m Purpose: Project financing Citibank (Taipei) has been awarded the mandate for a NT$5bn three year credit from optical and magnetic storage media product manufacturer CMC Magnetics. The deal will be split between a NT$4bn term loan priced at 110bp over the CP fixing rate and a NT$1bn guarantee facility. Proceeds will refinance a NT$3.9bn three year deal signed in 2002 that paid a margin of 220bp under the average prime rate of three Taiwanese commercial banks. The deal will be launched next week. Arranger Citibank (Taipei) has received commitments from over 20 banks for the NT$3bn three year fundraising for Siliconware Precision Industries Co. Despite the already strong response, the deal will be held open for a few extra days to allow some last banks to join the transaction. The NT$3bn five year term loan for Chia Her Industrial is progressing well, seven banks having joined so far with commitments totalling NT$2.58bn. Arrangers include Chinatrust Commercial Bank pledging NT$800m and First Commercial Bank committing NT$700m. Participants are: Chang Hwa Commercial Bank committing NT$300m, United Grand Commercial Bank NT$250m, Bank of Taiwan NT$230m, ICBC NT$200m and Grand Commercial Bank NT$100m. Arrangers are waiting for another bank to join before closing the facility. Proceeds are for debt repayment. Size: NT$3bn Type: Five year term loan Margin: 325bp over the average one year deposit rate of Chinatrust Commercial Bank, First Commercial Bank Arrangers: Chinatrust Commercial Bank, First Commercial Bank Fees: Commitment fee - 25bp Purposes: Debt repayment

Deutsche Bank has strengthened its Asian corporate finance division, stealing Eugene Qian from UBS Warburg to become director and head of utilities for Asia, a new role in the bank. Qian previously held a similar role in UBS, where he had worked for five years and was responsible for the coverage and execution of mandates from mainly Hong Kong and Chinese clients. He reports regionally to Phil Crotty, the head of global corporate finance in Asia, while he functionally reports to Rob Gray, the global head of energy, utilities and chemicals in London. He is in charge of a team of five utilities bankers, while the corporate finance division in Asia has about 100 senior staffers. "Eugene has extensive experience in the Asian utilities industry in both M&A and capital raising," said Crotty. "His recent focus on clients and transactions in China and Hong Kong will help develop further Deutsche Bank's franchise." n Meanwhile Young-Il Shin has jumped from Citibank to Deutsche Investment Trust Management (ITMC) in Korea to become the firm's new chief executive officer. Shin's appointment is a senior hire for the asset management firm, which has been looking for a new CEO after Won-Ik Lee resigned for personal reasons at the end of 2002. Shin reports to Choy Peng Wah, CEO of Deutsche Asset Management (DAM). "Shin will add tremendous value to our business through his outstanding business development and products marketing skills," Choy said. Shin is an established figure in Korea. Although at Citibank from 2001, he worked for LG Group for 18 years in various senior management positions. At Citibank, Shin headed business development for the consumer group, introducing credit insurance to local markets for the first time and monopolising the market, and also helping Citibank's card business to form an alliance with SK Group. Since receiving its license for Korea last year Deutsche ITMC has picked up Eu2bn in assets under management and advisory work. It aims to become one of the largest firms in the country in the next three years.

Japan Taiyo Life Insurance listed on Tuesday. Its shares have since risen, closing at ¥84,500 yesterday (Thursday), up more than 10% from their ¥75,000 pricing following the recent global bookbuild.

Two acquisition-related equity issues were launched in the Australian listed property trust sector this week, as Macquarie Goodman Industrial Trust and Stockland Property Trust raised A$441m between them after market hours on Wednesday. The deals signal that institutions and retail buyers are prepared to fund the consolidation taking place in the sector.

United Bank Limited (UBL) last week brought Pakistan's first publicly listed securitisation, a Rs990m ($17.8m) future flow deal for mobile phone operator Paktel Ltd. The securitisation will extend the firm's debt maturity profile. The proceeds will be used to redeem two loans: a Rs750m loan from UBL due in six months, and a Rs240m loan from Pakistan Kuwait Investment Co Ltd, due in 1.5 years.

UK-based Royal&SunAlliance's plans to float off Promina, the renamed entity that holds its Australian and New Zealand assets, are proceeding despite the Iraq war and the Sars virus scare in Asia. The indicative range was this week set in a broad band of A$1.50-A$2 per share, with retail investors given a discount of A$0.10 below the final institutional bookbuild price. The bookbuild takes place from May 7 to May 9, following the global roadshows that are already under way.

HSBC is preparing for another round of management musical chairs just a few months after making a set of senior changes in corporate and investment banking and markets (CIBM) coverage. Of the new changes, the most surprising is that Hong Kong veteran Michael Powell will follow Stuart Gulliver back to London to become head of global markets, Europe, and treasurer of HSBC Bank from July. Mark Bucknall, another experienced Hong Kong staffer, will also be reunited with his colleagues in London only seven months after he left Hong Kong for the US to become head of capital markets, Americas, and chief executive, HSBC Securities. Bucknall is set to become global head of debt finance and advisory, global markets, in another sign that HSBC has moved from autonomous regional management to a global approach. The bank announced a set of senior appointments across the globe and made Gulliver head of global markets in October. Since then, Stephen Green has taken over as group chief executive. Despite the additional restructuring, the reunification of the former Hong Kong bankers is consistent with HSBC's recent strategy. One reason why Gulliver was made head of global markets was to enable him to repeat his successes in Asia globally. "There is an opportunity now, while markets are low, to expand into new areas just as others are retreating," Powell told EuroWeek. "Stuart, Mark and I have always worked very well together as a team and we have proved that we can turn a business around. The Asian treasury and capital markets business from 1994 and 1995 was a very different operation to today." HSBC has set aggressive three and five year revenue and profit targets for the new global markets management. "We have set challenging performance targets for global markets," Gulliver told EuroWeek. "We don't disclose revenue and operating profit for the business but I can tell you we are aiming for a 50% rise in operating profit within three years from 2002. We will do that by focusing on clients, products and geographies, in that order, and I am confident there is considerable room for growth in each of those areas." Gulliver created Hong Kong's Asian fixed income and foreign exchange trading in 1994, and turned it into a profitable operation. Powell started in Hong Kong as head of interest rate trading in 1995 and has since been Gulliver's right-hand man in treasury and foreign exchange. "I have been doing a similar role for seven or eight years and it seemed a good time for a change and this role is an exciting new opportunity," Powell said. "From a treasury perspective there are many customers in Europe that we have not taken full advantage of yet. We will probably look to expand in both Mediterranean countries and other areas where we have established branches to begin with." Last year global markets made $3.72bn in pre-tax operating profit, and observers estimate that over 40% was from Asian operations, while Europe contributed just under 30%, and America the balance. With Powell moving from Hong Kong to London, Anita Fung and Paul Hand will fill his shoes as co-heads of global markets, Asia Pacific in July. Fung, who was previously head of Hong Kong trading, will also become treasurer, Asia Pacific, while Hand will retain his job as head of sales, Asia Pacific. Both report to Tony Rademeyer, head of CIBM, Asia Pacific, who has just started in Hong Kong, after previously being the treasurer for Europe. Despite all the recent staff moves from Hong Kong, Powell was sanguine about HSBC's future performance in the region: "Stuart and I have groomed Anita and Paul to take over from me for 12 months now, ever since it was obvious I was looking for a new role. Both of them are first class and Stuart runs the whole business, so can look at it too." In the US, HSBC has promoted Joseph Petri to be head of global markets, North America in Bucknall's place, in addition to his role of treasurer, North America, HSBC USA. Petri will continue reporting to Brian Robertson, head of CIMB, North America. All of the heads of global markets and Bucknall will also become members of a new global markets management committee chaired by Gulliver, with each reporting functionally to him. Observers said the new appointments in global markets are evidence of Stephen Green's expansion strategy. "Most people knew that Stephen was in the running for the succession and it meant that these moves, which had been relatively well planned, could press ahead," one banker said.

Hutchison Whampoa's decision to tap its $1.5bn 6.5% 2013 bond issue for another $1bn paid off this week, despite the war in Iraq and the threat of the pneumonia epidemic in Hong Kong. While the Republic of Korea and the Hong Kong Airport Authority postponed their 10 year global bond plans in light of the problems, the A3/A rated conglomerate took the opposite tack, gambling that its good financial results for 2002 would bolster interest in a $500m tap.