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The primary market picked up on the week as issuers took advantage of positive sentiment in the market to bring deals. In total about $7.8 billion in high-grade debt came to market, with notable deals from the bank and finance sector (Goldman Sachs, Lehman Brothers, Bank of New York, MBNA) as well as transactions from benchmark borrowers like Dow Chemicals, DuPont and Unilever. Signaling strong demand for perceived safe haven credits, Pepsi Bottling issued $1 billion 10-year notes at just 80 basis points over Treasuries. The calendar should pick up in coming weeks as issuers try to take advantage of the window between now and Thanksgiving to get deals done. Historically low borrowing rates, decent cash on the sidelines and uncertainty as we head into the new year provide powerful incentives to borrow now.

CreditSights, the independent fixed-income research provider based in New York, has hired two analysts to start up a London credit research effort, according to firm president Paul Ciasullo. The analysts, Anja King and Nehche Yazgan, were from Deutsche Bank's London investment-grade research group, and were added in response to European investor demand. King had been co-head of the investment-grade group for the past year. It could not be determined who would assume coverage duties for the two. CreditSights' staff now includes 14 senior analyst's covering both corporate and sovereign credits.

Deutsche Bank, Bear Stearns and Salomon Smith Barney finalized the structure for the $1.55 billion credit facility backing R.H. Donnelley's $2.23 billion acquisition of Sprint's directory publishing business at a bank meeting last Thursday. The credit, which is rated Ba3, will include a $125 million revolver, a $575 million "A" term loan and an $850 million "B" tranche, according to a source familiar with the credit. Pricing is LIBOR plus 31/ 2% on the pro-rata portion and LIBOR plus 4% on the "B" piece. Bankers on the deal either declined to comment or did not return calls by press time.

The bank debt of U.S. Can is said to have traded last Tuesday at the 82 level, continuing the downward trend that the paper has experienced over the past couple of months. Market players attributed the latest drop to investors spooked by the resignation of U.S. Can CEO Paul Jones. Earlier last week, market sources had quoted the market for the name anywhere from the mid- to high 80s to the 76-80 range.

Bank of America will be shopping an add-on term loan in the neighborhood of $150 million for Vanguard Health Systems in order to back its $295 million acquisition of five hospitals from Baptist Health System, according to a banker familiar with the situation. The term loan will add to the Nashville healthcare provider's existing $125 million revolver, which is led by B of A and co-documentation agentsWachovia Securities and GE Capital. A bank meeting is set for the first week in December, the banker noted. B of A officials declined to comment.

SpectraSite Holdings last week announced that it is pursuing a prepackaged bankruptcy plan to clean up its balance sheet, but the bank debt held at the operating level remained silent. While there was a rumor that a $3-5 million piece changed hands in the 84-85 range, most market players quoted the paper in the 82-84 context, where it has been resting for weeks.

Stillwater Mining has amended its $250 million credit facility in order to prevent covenant non-compliance. According to James Sabala, cfo, the platinum and palladium mining company had been addressing changes in its business plan that compromised its ability to meet some production terms. The terms of the Sept. 27 amendment reduced the trailing four quarters production covenant from 620,000 ounces to 610,000 ounces of palladium and platinum. On Oct. 25, the company again amended the facility through the end of its term to further ensure certain production and financial covenant compliance. The new agreement holds incremental production requirements, which change throughout the life of the facility, he noted.

Devonshire Capital and Trinity Group have launched a Bt607.9m ($15m) ABCP conduit to securitise residential hire purchase receivables for Thailand's National Housing Authority (NHA). Osprey Series I Co Ltd is the first publicly rated securitisation to be approved by the Thai SEC. "This is a groundbreaking programme," said Oliver Hughes, head of corporate finance debt products at Devonshire Capital in Bangkok. "There isn't really a CP market in Thailand, so we're paving the way. We aimed the issue very much towards local investors and it was oversubscribed."

Investors focused on two contrasting utility-related bond issues this week, as subsidiaries of American Electric Power (AEP) and SPI PowerNet launched deals into a moribund market. The fact that the borrowers are both utility companies was the only thing that the two deals had in common, and that helped ensure that they did not clash when it came to garnering investor support.

The lead managers for the China Oilfield Services (COS) flotation have brought forward the timetable for the Hong Kong IPO following strong demand from fund managers during the early part of the roadshow. The books will close on November 14, the same day as the Hong Kong public offer is due to close. The books were originally due to close on November 19.

China Telecom officially priced its revised and reduced IPO at HK$1.48 yesterday (Thursday). That was the bottom end of the price range, despite the deal having been slashed from a maximum 17.3bn shares to 8.69bn, including the greenshoe option. Although officials said the book was "more than covered", the deal was widely viewed as a flop - or mediocre at best. One head of syndicate described it as "a case study in how it can all go wrong". Another described the lack of institutional participation as giving a "Pyrrhic victory at best".

Indonesia Bank Negara Indonesia (BNI) embarked on the roadshow for its $75m 10 year non-call five tier two subordinated bond issue via JP Morgan this week. The deal, which has been reduced from $100m, is to be priced next week.