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Lear Corporation, based in Southfield, Mich., makes interiors for automobiles. It has three high-yield issues outstanding totaling $1.65 billion, making it the largest automotive parts issuer in mainstream high-yield. With a rating of (Ba1/BB+), a number of high-yield analysts say the company has a good shot at becoming investment-grade.

Investors did not wait until last Thursday's retail launch to get their hands on DIRECTV's $800 million "B" piece, causing oversubscription on the loan in advance of the bank meeting. Leads Deutsche Bank and Bank of America still went ahead with the meeting, however, leaving the book open for more "B" commitments to boost oversubscription levels even further, said a banker familiar with the deal. Before the meeting commitments reached the $1 billion level. "[The lead banks are] not going to shut it down yet," he said. He added that any pricing concessions or tranche changes would depend on how the pro rata and bond deal did in the markets.

El Paso Corp.'s bank debt took a dive last week on reports that the company has drawn down on its $1 billion credit due in August. Dealers said a block of the bank debt traded out of an original lender in the mid-80s, slipping from the low 90s. "They drew down on the bank debt, which has everyone spooked. Why do you want to draw down on something maturing in August?" one dealer commented. Calls to Dwight Scott, El Paso cfo, were referred to a spokeswoman. She said the company indicated in a recent presentation that it might draw down on its lines to maximize liquidity. She did not respond to questions regarding how El Paso plans to deal with its near-term bank debt maturities.

Enron's bank debt climbed into the high teens last week after news leaked out that the company's creditors might have access to assets that were transferred off Enron's balance sheet. Paper that has been trading in the mid-teens jumped to a market of 17-20. Trading was said to be slim, but Deutsche Bank is believed to have traded a $10 million piece out of an original seller at the 18 level. Officials at the bank declined to comment.

Morgan Joseph & Co. has hired Joe Galzerano to the new position of senior v.p. and high-yield analyst. Howard Goldberg, head of research and one of three principals at the firm, says Morgan Joseph continues to build its nascent high-yield effort, and hopes to make another research hire and also add to its sales desk. The bulk of the 14 person high-yield team came over from Libra Securities last month.

Higher-rated sectors such as gaming were off slightly, which traders attributed to investors raising cash to purchase new issues. But, benchmark names such as Allied Waste, Nextel Communications and Lyondell Chemical were unchanged through Wednesday. A giant $2.1 billion offering from Crown Cork & Seal found buyers despite some difficulty selling the senior tranche. Here was other action.

TRW Automotive's $1.81 billion acquisition credit shifted into overdrive last week after the company's concurrent $1.58 billion bond deal hit the market. The $900 million "B" loan had oversubscribed to the $1.5 billion range as LMW went to press, according to a banker familiar with the deal. The "B" had been half filled before the bonds were priced (LMW, 2/10). He noted that the bonds drove the performance of the credit. Additionally, the $910 million pro rata increased its commitment levels with 20 investors bidding in, compared with fewer than 10 investors the previous week, he stated. The banker was unable to comment regarding possible structural or pricing changes to the deal.

UBS Warburg is planning to hire at least one, and possibly several, auto asset-backed securities originators for its New York ABS effort, says Shahid Quraishi, managing director and head of ABS origination. He says he is evaluating whether it makes sense to hire one individual or a team, depending on expected business and profitability for this highly liquid, plain vanilla sector of the ABS market. He adds that he will make that decision early next month. He will then proceed with the hires by the end of next month. The positions would be newly created. All new staffers would report to Quraishi.

A wave of acquisitions in the U.K. water utility sector is expected to lead to at least two whole business securitizations. "It's certainly more excitement than the water sector has ever seen," notes one London-based utilities analyst. It is difficult to say when these deals will come to market, note analysts, because they are so complex and are structured at a tortoise's pace.

Constellation Brands is hitting the retail market next week with an $800 million "B" loan priced at LIBOR plus 23/ 4% and market players are buzzing in anticipation. With a track record for paying down debt promptly and a position as one of the few diversified alcoholic beverage makers in the corporate arena, Constellation is viewed as a stable investment. "They're known to de-lever quickly, post acquisition," said Gil Marchand, senior portfolio manager at Aladdin Capital.

Wyndham International is said to be in the process of amending its bank debt so that the maturity of its revolver and increasing-rate loan pieces, which mature in June 2004, align with the June 2006 maturity of its "B" term loan. The company's bank debt has been softer over the last couple of weeks with the "B" loan quoted in the 77 1/2 79 context and the IRLs quoted in the 80 1/2 82 1/4 range, according to LoanX. No trades could be confirmed as market players are likely hanging on to their current exposure until there is more certainty, said one buysider. At the end of last year, Wyndham had a $156.4 million revolver, a $447.7 million IRL and a $1.183 billion "B" piece. J.P. Morgan leads the bank deal.

Wynn Resorts landed a $189 million furniture, fixtures and equipment loan in conjunction with a $1 billion corporate loan in an effort to secure as much delayed-draw bank loan capital as possible for the development of its Le Reve resort and casino. Matt Maddox, v.p. of investor relations and treasurer for Wynn Resorts, explained that the FFE loan, with a seven-year term and LIBOR plus 4% pricing, can be drawn down as needed. In addition, the FFE loan, led by Bank of America, also attracted new investors such as GE Capital, GMAC and CIT Group into the lending group.