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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.

KBC Financial Products has hired two senior analysts and a senior salesman as it continues its effort to grow its high-yield business, says Joe Garofoli, managing director at the New York-based unit of Belgium's KBC Bank.

Mike Weston, Morgan Stanley's London-based head of global head of debt syndicate, has resigned from the firm to take a break from the industry, according to a firm insider. The insider says Weston maybe interested in returning to his native New Zealand. His duties will be assumed by Raj Dhanda and Michael Heaney, who will serve as co-heads of global debt origination. They report to Walid Chammah, co-head of global capital markets. Previously, Dhanda had been head of U.S. head of debt syndication and Heaney was head of European debt syndication. A Morgan Stanley spokesman declined to comment.

National Bedding Company increased the "B" tranche of its new $235 million credit after the Bank of America-led credit met with strong institutional demand. The "B" tranche was increased by $100 million and is now set at $132 million. The credit's five-year "A" piece was decreased from $75 million to $43 million, said Jim Polark, v.p. and cfo. A five-year revolver remained at $60 million. The credit backs National Bedding's recent acquisition of the bankrupt Serta brand mattress manufacturer Sleepmaster. Polark explained that $117 million went toward the payment of Sleepmaster's debt, while $35 million went to Sleepmaster's creditors committee. The facility also refinanced the company's debt, including about $55 million on an existing $85 million term loan and revolver facility, Polark stated. Revolver usage on the new line will include $31.9 million of standby letters of credit issued to support industrial revenue bonds (LMW, 2/10).

Nextel Communications' "B" loan climbed up to heights unseen for the paper in more than a year, as it traded in the 97 1/8 range last week. "The trends for the business are good," noted one investor, explaining that the paper had been so depressed partly because of its association with the telecom sector. "We're glad that the market is recognizing our progress," said a company spokeswoman, in regards to the uptick.

Oaktree Capital Management is planning a new distressed debt fund, OCM Opportunities Fund V, and will likely start marketing the fund within the next two months. Howard Marks, chairman of Oaktree, said the size of the fund will range from $750 million to $1 billion and will be offered to existing clients. Oaktree has a $50 million commitment from the Illinois State Teachers Retirement System waiting for when the fund launches.

Orius Corp. secured a new $145 million credit to facilitate its exit from bankruptcy, a process that allowed the provider of telecom infrastructure services to reduce its debt load by about 80%. The company had $350 million in principal value in term loans and $150 million of subordinated notes. It now has $100 million in term loans, said Robert Agres, senior v.p. and cfo of Orius. As Orius' pre-petition lender, Deutsche Bank led the exit facility.