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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.

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.

Is that an exploded dye pack in your pants, or are you just happy to see me? A bank robbery suspect learned his lesson the hard way last week. Shortly after a National City Bank was robbed, John Gladney was spotted by the police walking strangely and in apparant pain about a block away from the bank. He had stuffed the money, which contained an explosive dye pack, down his pants and it exploded near his groin. He was captured and charged with aggravated robbery.

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.

More than $10 million of Kmart's three-year revolver was sold north of the 40 level last week in a mini-auction out of an original lender. The company's bank debt has been trading as the company nears its exit from bankruptcy. Although the reorganization plan will distribute 40 cents on the dollar to lenders for their exposure, dealers explained that the paper was able to trade higher than 40 because buyers receive net-backs for letters of credit. The three-year loan is trading at a 125 basis point premium to the 364-day revolver, which is changing hands in the 38 1/4 39 range.

Kmart's $2 billion exit financing credit will be launching to retail investors on April 3, keeping with the company's "fast-track" plans to emerge from Chapter 11 on or before April 30. The deal includes a $1.8 billion revolver and a $200 million "B" piece-- both priced at LIBOR plus 31/2%. A banker familiar with the GE Commercial Finance, Bank of America and Fleet Retail Finance-led facility said that the managing agent round, which began March 13, had exceeded expectations in commitment levels. Reportedly, agent commitment levels are near $1 billion. The asset-based deal is secured by inventory and will be used for ongoing capital needs after emergence. Calls to Fleet were not returned, while a B of A official and a GE spokesman declined to comment.

Deephaven Capital Management, a subsidiary of Knight Trading that provides asset management services to institutional and high-net-worth investors, has started to include distressed debt in its trading operations with a team of three from American Express Asset Management Group. Deephaven has brought on board John Engelen, a former senior portfolio manager to the distressed debt group at AMEX, to act as a trader for the Deephaven Market Neutral Master Fund. Peter Glerum and Brad Bauer, former analysts at AMEX on the credit opportunities hedge fund, have also moved to Deephaven, based in Minnetonka, Minn. Engelen and Deephaven officials declined to comment.

National Equipment Services' senior secured bank credit facility has been lowered to CCC by Standard & Poor's due to concerns regarding the company's liquidity and upcoming loan maturities. S&P also placed the ratings on watch with negative implications. The downgrade reflects the belief that NES may not be able to refinance or extend maturities on its $550 million line of credit due in July, or meet its upcoming $14 million interest payments on its subordinate notes in May. "The company has significant maturities and liquidity issues," said John Sico, analyst at S&P. Calls to company officials were not returned.

A $10 million piece of Mirant Corp. was rumored to have traded at the 79 level a week ago last Friday, although some dealers doubted that the trade went off. Traders said Mirant bank debt rarely changes hands. There was a wide discrepancy regarding the levels of the bank debt piece before the rumored trade with market players noting the paper was quoted anywhere from the low 60s to the mid-to-high 70s.

NRG Energy's severely depressed bank debt regained more than five points last week after the independent power producer's parent, Xcel Energy, announced an agreement with NRG creditors that would give NRG a larger-than-expected payout. NRG has been working toward a restructuring plan since August, but the latest development will allow Xcel and NRG to sever ties. The settlement, which is $452 million more than expected, comes with the release of all NRG claims against Xcel and paves the way for NRG to seek a prepackaged bankruptcy plan.