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Moody's Investors Service downgraded the ratings of MAGNATRAX's $268 million senior secured credit facility from Ba3 to B3 after its subsidiary, Vicwest, was forced to miss a Sept. 10 interest payment on its subordinated notes. There are cross default clauses, noted Joseph Snider, Moody's analyst. Vicwest's banks, which include CIBC World Markets as lead lender, would not permit the interest payment as the company is in negotiations to amend covenants that it had breached. The precise covenants involved could not be determined.

Credit Suisse Securities Ltd., the European broker/dealer arm of Credit Suisse Group, is looking to add selectively to its London fixed-income sales team. Roger Jones, sales manager, says the firm is looking to expand and develop its German- and French-speaking institutional client base and, accordingly, is looking for experienced fixed-income salespeople with the appropriate language skills. The London group specializes in credit products and is made up of roughly 35 people.

Credit Suisse First Boston and Salomon Smith Barney are in the market with a new seven-and-a-half year, $210 million "C" loan for Terex. The loan is priced at LIBOR plus 21/ 2% and backs the company's $270 million acquisition of Genie Holdings. The incremental tranche was launched by CSFB and Salomon on Sept. 17, according to Kevin O'Reilly, v.p. of investor relations for Terex. In addition to the loan, which is rated Ba3, $65 million in Terex common stock will be used to cover the Genie transaction, with Westport, Conn.-based Terex assuming $195 million of Genie's debt.

Market players said more than $50 million of Enron's bank debt has been trading in the last two weeks, with the paper changing hands up a point or two from where it has sat for months. Traders noted pieces trading as high as 13131/ 2, but no one could determine what had caused the recent boost. "On the horizon is the [bankruptcy court appointed] examiner's initial report," a company spokesman said, but noted that he did not think that would cause the recent activity.

Dresser plans to pay down approximately $23 million of its eight-year, $455 million "B" term loan by the end of the month. The company will pay down $30 million as part of a debt reduction strategy to combat the economic slump, said James Nattier, cfo. "Currently, in the depressed economic environment our focus is on repaying debt," Nattier noted. The reduction will be funded with cash on the company's balance sheet. The "B" piece has no call protection.

Dominion Resources will hold an invitation-only, one-and-a-half-day conference exclusively for fixed-income analysts and investors in its hometown of Reston, Va. in November, says Scott Hetzer, senior v.p. and Treasurer. Utility analysts say it is highly unusual for an issuer to devote so much time to the fixed-income community. One assumed that the meeting is an attempt to mend fences with fixed-income investors. Dominion lowered earnings guidance just a few days after issuing its 5.7% notes of '12 on Sept. 9. Dominion included a last minute step-up coupon to compensate investors in the event of a possible ratings downgrade, which caused spreads to snap back after some initial widening. The analyst's other, admittedly "cynical" explanation for the meeting was that keeping equity investors away would allow the company to pacify bond investors without alienating the equity side.

Technology was the big loser through last Thursday, though weakness was widespread following the equity slump. Allied Waste softened ahead of new issuance.Fleming andHealthSouth saw heavy selling yet again. Here is other selected action.

A high-yield portfolio manager and a lodging analyst are divided on the high-yield lodging sector. Tom O'Reilly, analyst and portfolio manager at Lincoln Capital Management in Chicago, Ill., says lodging is trading too rich for industry fundamentals. Lincoln upgraded its lodging portfolio earlier this year, and O'Reilly says even the highly rated names the firm has added are beginning to look like possible candidates for sale. Lincoln's Starwood Hotels & Resorts 7.875% notes of '12 (Ba1/BBB-) had moved up to 99 last Monday and the John Q. Hammons Hotels 8.875% notes of '12 (B2/B) were at 97. O'Reilly says he would sell both issues at par. "Most of the upside is already priced in," he says.

The Loan Syndications and Trading Association (LSTA) has appointed Barbara Sherman as its new special counsel. Sherman was hired from Mandel, Katz, Manna & Brosnan for the purpose of discovering ways to improve standard documentation and market practices to reduce cost and settlement times for trades in the secondary loan market. "The first thing that she will work on is the changes to the distressed purchase and sale agreement," said Jane Summers, LSTA general counsel. Sherman will begin working on Sept. 30. At Mandel, Katz, Manna, & Bronsnan, Sherman worked with par and distressed settlement. Previously she had been at Goldman Sachs where she dealt with legal issues involving the trading and settlement process. Sherman served on the LSTA board of directors as a representative for Goldman Sachs in 2001.

MetoKote lined up a $60 million term loan to rework the amortization on its existing credit, according to Patrick Osler, cfo. The new piece paid down portions of the existing credit and allowed the company to put a back-ended amortization schedule in place. "It would provide substantial relief over the next six to eight quarters and then ramp up after that," he said, choosing not to explain the exact payment schedule. The company reworked the credit without extending its 2005 maturity date.

As spreads on Sears Roebuck bonds continue to widen, a buy-side analyst argues that the paper is still too rich. Since Sears gets roughly 60% of its earnings before interest and taxes (EBIT) from credit card debt, the buy-sider argues that it is really a finance company in disguise. The analyst says Sears should trade closer to the 300 range, with Household Finance. While the Sears 6.7% notes of '12 were 201 basis points over 10-year Treasuries, that was well inside of Household's 7.3% notes of '12, which were at 361.

The market for Exide Technologies' bank debt drooped last week, falling from the mid-to high 50s into the 40s as the battery maker continues to work its way through bankruptcy. Traders said that paper did not change hands. Market players said that they were worried that the company would not be able to continue to stay current with the interest rate on its bank debt. In response, an Exide spokesman said, "The company is meeting and exceeding its business plan and our liquidity position is solid." He declined to specifically comment on the interest rate.