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Caja de Ahorros de Valencia, Castellón y Alicante (Bancaja) will come to market with a E1 billion residential mortgage-backed securitization, set to launch later this month. The bank has mandated Dresdner Kleinwort Wasserstein as sole lead manager, according to London-based bankers. The deal will be Bancaja's second RMBS transaction this year (BW, 8/4). In an interesting twist, market players say the last deal was sold to a single investor and as such, the upcoming deal is going to be the first time investors have access to Bancaja RMBS paper. Bancaja is Spain's seventh largest bank.

Standard & Poor's is looking for two senior collateralized debt analysts for its recently created CDO manager focus group, according to group head, Mark Gaw, associate director in New York. Both positions are newly created. The positions are for the associate director level--a senior title at S&P--and both analysts would report directly to Gaw. Created earlier this year, the manager focus group is part of S&P's structured finance division, although it closely works with the investment services group of the rating agency, headed by Joel Friedman. The group provides more visibility in the CDO market by releasing reports on CDO collateral managers' performance relative to their peers, at least for those willing to get the exposure. Gaw says he routinely talks to managers who refuse to be profiled. The group, he adds, has already evaluated 16 collateral managers, including firms such as BlackRock Financial Management, Deerfield Capital Management, PIMCO and American Express Asset Management. He plans to profile 10 more asset managers within the next few months.

A $200 million add-on credit for Genesis Health Ventures has been re-priced after Standard & Poor's weighed in with a B+ rating, one notch lower than the Ba3 opinion offered byMoody's Investors Service. "S&P is a little misinformed and took a different view to the collateral package than Moody's," one banker said. The $200 million add-on to the existing "B" piece was priced at LIBOR plus 31/ 2%, but it has been flexed upward to LIBOR plus 33/ 4% to reflect the rating, he noted, adding that the loan also is being offered with a 50 basis point discount. Bankers at First Union and Goldman Sachs, which are leading the credit, either declined to comment or did not return calls. A spokeswoman for Genesis Health also did not return calls.

The bank debt of AES Corporation was active last week with the revolver changing hands in the 84-87 range, up from the low 80s. The recent activity in the name comes after the company announced that it would complete a new $1.6 billion credit facility. The new credit is earmarked to refinance the company's existing $850 million revolver maturing in 2003, the $425 million term loan due in August 2003 and the $263 million term loan for subsidiary AES EDC Funding II. The new credit, however, still needs 100% lender approval.

Amkor Technology extended an amendment to its bank covenants through December 2003 in order to maintain more flexibility during a severe industry downturn, according to Kenneth Joyce, cfo. When the company's credit facility was originated, the covenants were based on liquidity and cash flow, Joyce noted. But as the West Chester, Pa., company was hit by the technology slump, it could no longer uphold the same terms. The current covenants were implemented for the year ending this December but, because the company had not violated the covenants this year, the lenders felt comfortable extending the amendment through December 2003, he said.

Moody's Investors Service has placed all of Broadwing's ratings on review for a possible downgrade, reflecting concerns that the company's funding needs and covenant compliance demands will continue to fall under pressure in the near term. Ratings under review include the Cincinnati-based communications service provider's senior secured debt--comprising three term loans and a revolver totaling $2.3 billion--rated Ba3, as well as $46 million in senior subordinated debt rated B3.

Calpine's bank debt traded in the high 70s last week, with market players attributing the paper's dip to sector problems and bank holder disappointment concerning the use of proceeds from a recent asset sale. The bank debt dipped down from the high 80s, where it was said to have traded a couple of weeks ago. "We can't find a bottom on this," one dealer said, noting that bids keep sinking and offers slide right after.

A $4.7 billion refinancing for CenterPoint Energy, previously Reliant Energy, was pulled from the fire in the wee hours of Friday morning after tough terms were demanded by the banks. As first reported on LMW's Web site, the company secured the crucial refinancing after blowing its original deadline of Thursday at 5 p.m. West LB was the sole holdout as the deadline passed, but the bank ended up coming in on the deal, quashing the threat of a potential Chapter 11 filing. A spokesman for CenterPoint said WestLB and 29 other banks agreed to the new financing. The company is required to raise $400 million of third-party capital to replace maturing debt and, if the capital is not raised, the credit facilities will mature on Nov. 15 this year.

Citigroup/Schroder Salomon Smith Barney is seeking to rebuild and expand its European securitization research team. Richard Pagan, co-head of European credit research in London, says the firm is still discussing the size of the team, which had consisted of one analyst until Shaker Sundaram, then its only European securitization analyst, left to become a salesman at UBS Warburg (BW, 8/25). Since Sundaram's departure, Pagan says the firm has determined "a team of one is too small." Now, Citi/SSSB is looking for a securitization research head to replace Sundaram as well as a few other analysts.

The proposed $525 million senior secured credit facility for coal producer Massey Energy is secured by high-quality accounts receivables and inventories, which should realize substantial recovery under a liquidation scenario. However, in the event of a default or bankruptcy, the secured debt holders are unlikely to receive full compensation. As a result, Standard & Poor's has assigned the credit a rating of BBB-.

The notes for Hewett's Island CDO, CypressTree Innvestment Management's innovative collateralized debt obligation, were priced late last month. The $257.5 million vehicle, which consists of 80-85% senior secured loans and 15-20% high-yield bonds, is distinct due to structural features designed to reduce negative arbitrage, market officials explained. The excess spread will be used to pay down the most expensive debt first, improving cash flow and boosting the return on equity over the life of the vehicle (LMW, 9/30). Links Securities underwrote the notes for the Boston-based asset manager.

Last week, Financial Research Associatesheld the Distressed Debt Summit 2002 at the Princeton Club in New York City. Highlights included trends in defaults and recoveries, advanced workout strategies and opportunities for distressed investors. Reporter Molly Jackson Sellwas on hand and filed the following stories.