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Koppers Industries could be downgraded by Moody's Investors Service because of earnings and cash flow pressures confronting the Pittsburgh-based company. These pressures have been caused by the extended downturn in North American aluminum and steel markets, the imminent expiration of tax credits and uncertainty surrounding the recently announced investigation led by the European Union and the U.S. Department of Justice related to competitive practices. The credit facility, which includes a $100 million revolver, a $9.7 million "A" loan and $43 million "B" loan is rated Ba2. Moody's has changed the outlook to negative from stable.

The Aerostructures Corp. has landed a new $165 million credit despite tough times for the aerospace industry and tight credit markets. The company needed the new facility in anticipation of an upcoming March 2003 maturity on its existing $75 million revolver, said Dev Kapadia, a principal at The Carlyle Management Group, which owns Aerostructures. The new loan did not come without concessions, however, as the pricing on the deal was flexed up 50 basis points during syndication on both the revolver and institutional tranches.

A $30 million piece of AES Corp. traded out of the hands of a commercial bank recently as a few lenders refused to sign on to a refinancing deal that needed 100% lender approval. The bank that sold the paper was said to have wanted to reduce its large position in the name and was not one of the lenders holding out. Some market players suggested the bank sold out of the name to prepare its books for the year's end.

The collapse of EchoStar Communications' bid for Hughes Electronics gives investors a chance to make total return gains in the satellite sector, according to a buy- and sell-side analyst. However, they disagree on which credits stand to benefit the most.

Bear Stearns Merchant Banking also scored a $120 million senior credit facility along with $67 million in subordinated mezzanine debt to back its acquisition of Vitamin Shoppe, with Bear Stearns and BNP Paribas providing the line. "Bear's syndication group stepped up more quickly than anyone else in a very tight frame in a competitive auction process, and BNP joined as co-lead because they knew the company," said Richard Perkal, senior managing director at the Bear Stearns buyout arm, adding that BNP has lent to the vitamin industry before.

Scotia Capital, Salomon Smith Barney and Bank of America launched syndication of an $800 million refinancing credit for Levi Strauss & Co. last Wednesday. Pricing is LIBOR plus 33/ 4% on the $400 million revolver and LIBOR plus 4% on the "B" term loan, according to a banker familiar with the credit. Levi Strauss currently has a $1.05 billion facility with the three banks that matures in August of 2003. Credit Suisse First Boston, Fleet Boston Financial and J.P. Morgan have committed to the revolver. A B of A official declined to comment while officials at Salomon and Scotia did not return calls.

Barclays Global Investors has launched a fund that invests primarily in sterling-denominated inflation-linked bonds. The new fund, called the Real Return Fund, debuted last week with

Barclays Capital has priced the notes for Gulf Stream Asset Management's Compass CLO 2002-1, a $300 million collateralized loan obligation. Gulf Stream is a new asset management firm founded by Mark Mahoney, who previously established Institutional Debt Management (IDM) and was head of the capital markets group at Wachovia Securities and First Union. One CLO manager said he was impressed with Gulf Stream's showing, noting that he perceived Mahoney as a not "in the trenches guy" at IDM, where he was more of a top boss. He also said Barclays' involvement is extremely welcome, because it is another underwriter that can find investors.

Bear Stearns Merchant Banking completed two separate credit lines to back the acquisition of Lerner New York/New York & Company from Limited Brands. The Bear Stearns private equity arm wanted a loan with a secondary lien on assets along with a three-year, $120 million revolver that was jointly underwritten by Congress Financial and CIT Group, said Bo Arlander, senior managing director at Bear Stearns. But the two lead banks would only do a loan with a first lien on assets, so the firm tapped Capital Source for a separate five-year, $20 million term loan. CIT and Congress do not provide second lien loans, she said. "It is in between a mezz and a 'B.' It's a hybrid" she stated, explaining the piece of debt.

A small piece of Broadwing's "B" term loan was rumored to have traded in the low 90s after the company announced that it would receive $200 million of six-year notes from a group of funds managed by Goldman Sachs. The financing has been pegged to pay down bank debt, but is contingent upon the renegotiation of Broadwing's current credit agreement. Broadwing currently plans to amend various aspects of its existing credit facility, including pushing out its 2004 maturities. "The capital we received from Goldman is the first step in renegotiating the facility," said a company spokesman.

Large pieces of Crown Cork & Seal traded last week as hedge funds looked to play the company's capital structure by buying the bank debt and shorting the bonds, according to traders. Chunks ranging from $10-20 million were believed to have changed hands in the 92-93 range. The total amount traded could not be determined. The paper was being quoted in the 89 7/8 91 3/8 range at the beginning of the month, according to LoanX. Timothy Donahue, senior v.p. of finance, could not be reached by press time. J.P. Morgan leads the bank debt.

Charter Communications strengthened this week after the company announced that it was pursuing a plan to streamline its operations. The bank debt had been trading in the 84 1/2 85 1/2 range, but firmed up to the 85 3/4 87 3/4 range. "The news was that they were going to consolidate and cut costs," said one trader, noting cash flow would likely improve. "I wouldn't be surprised to see it hit the 90s before the end of the year," noted another market player.