Search results for

Italy will use securitization as part of the E19 billion financing for its high-speed rail network, says a Treasury official in Rome. Infrastructurre SpA has been established as a company to complete rail work in a public private partnership, similar to those created in the U.K. to finance and complete infrastructure deals. Andrea Ripa di Meana, ceo of Infrastucturre in Rome, could not be reached for comment.

J.P. Morgan and FleetBoston Financial may have to increase pricing on a $250 million credit for National Mentor as the banks struggle to attract investors. Commitment levels for the BB- rated deal that was launched on Feb. 10 could not be determined. "Investors have been a little more wary these days of non-investment grades. It's not specific to the company so much as the general look of the market," a source said. A FleetBoston official declined to comment.

Merrill Lynch hired Chris Ricciardi from Credit Suisse First Boston as global head of collateralized debt obligation origination and structuring, according to an internal memo obtained by Bond Week. Ricciardi will report to Mac Taylor, managing director and head of global structured products. He will be in charge of all CDO asset classes, working closely with the CDO trading and distribution team. Taylor declined to comment. Ricciardi resigned from CSFB last Tuesday. Michael Duvally, a spokesman at Merrill Lynch, declined to comment. Ricciardi could not be reached for comment. He is expected to join Merrill Lynch in the coming weeks.

Microcell Telecommunications' bank debt levels retreated to the low 70s last week after investor demand ran the paper up into the 77-79 context two weeks ago. Market players said there are lenders looking to sell, but buyers of the paper have filled up on their capacity for the name. No trades could be confirmed. J.P. Morgan is the lead on Microcell's bank debt.

Morgan Stanley has lost two senior members of its corporate bond research group to rival firms. Matt Clark, a retail, consumer products and healthcare analyst who has appeared on the Institutional Investor All-America Fixed-Income Research Team for six straight years, has joined Salomon Smith Barney's San Francisco office as a corporate bond salesman reporting to Jeff Gibbons, managing director. Clark and Gibbons confirmed the hire, but declined further comment. Frank Henson, who had reported to Clark, is taking over lead coverage responsibilities at Morgan Stanley, according to high-grade sell-side officials familiar with the situation. Henson declined comment.

GE Commercial Finance, Bank of America and Fleet Retail Finance are pitching Kmart's $2 billion exit financing deal to managing agents this Thursday. The credit resembles the bankrupt company's existing debtor-in-possession facility, said a banker familiar with the facility. The package includes a $1.8 billion revolver and a $200 million "B" loan priced at LIBOR plus 3 1/2%, he added. The deal is secured by inventory and would be subject to the company's satisfaction of customary closing conditions. The credit will be used for ongoing capital needs when the mass merchandising retail company emerges from Chapter 11, targeted for the end of next month. A B of A official declined to comment, while Fleet and GE bankers did not return calls.

Bear Stearns is looking to add a fixed-income trader to its London proprietary trading desk. The position is newly created. Bear Stearns is looking for someone to trade European government securities and other fixed-income products. A firm spokesman says Bear Stearns is not planning a hiring spree, but simply looking for a talented trader. The desk is headed by Tim Bass, who works with one other trader.

Bank of America and Bear Stearns last Thursday launched syndication of a $225 million credit for Pinnacle Entertainment. The proceeds will finance the gaming company's construction and development of a hotel and casino resort in Lake Charles, La. The debt package includes a five-year, $125 million term loan and a four-year, $100 million revolver. Bankers familiar with the deal would not indicate pricing, but one banker noted that it would be in line with Pinnacle's BB rating. He added that total leverage would start at 5.8 times, with senior leverage below two times for the life of the facility. B of A and Bear Stearns officials declined to comment.

Banc of America Securities is looking to launch its synthetic collateralized loan obligation product into the European market. Bof A's SERVES (Structured Enhanced Return Vehicle)structures are referenced to a portfolio of U.S. high-yield loans, which is then leveraged via a total-return swap, according to firm officials. The details of the European launch are still being ironed out, noted the officials, declining to elaborate. Officials familiar with BofA expect the European offering will reference European high yield names.

Calpine Corp.'s term loan "B" ticked up a point to a point-and-a-half to the 93 level last Thursday. Paper was said to have traded at those levels after slowly climbing up during the course of the week. The bank debt grows stronger as investors feel more comfortable with the name. Although there have been recent reports that indicate valuations for power generating assets are lower, Calpine has a stock of quality assets in good locations, noted one market player. He added that assets sales were likely to get done easily.

WEEKLY UPDATE

DDJ Capital, a Wellesley, Mass.-based distressed debt investor, is believed to have bought up the majority of SLI's bank debt in the 15 context. The trades, estimated to be for about $200 million worth of paper, are rumored to have been brokered by FleetBoston Financial, which led the credit. Judy Mencher, co-founder and principal of DDJ, referred calls to a spokeswoman, who cited the firm's policy of not commenting on its investments or strategies. Calls to Fleet officials and Robert Mancini, SLI cfo, were not returned by press time.