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CONMED recently secured a new $200 million facility through J.P. Morgan in order to refinance a $105 million credit set to expire in December. According to Robert Shallish Jr., cfo, the Utica, N.Y., surgical equipment company decided to refinance early because of the possibility that interest rates would be higher in December due to an influx of bank deals. "Word was that more deals are coming later in the year and the pricing would get worse," Shallish said.

At least one portfolio manager and one sell-side analyst agree that the bonds of auto issuers are more likely to get cheaper than they are to rebound any time soon. Rance Duke, portfolio manager at Fort Washington Investment Advisors in Cincinnati, recently sold Daimler Chrysler 8.5% notes of '31 at 215 over the curve. He believes car companies will be forced to continue issuing new debt to pay for their incentives programs. Pressure from foreign competition and labor contracts that make factory closures impractical give car companies few business options, says Duke. The portfolio manager says that while he is underweight autos, he would continue to sell off-the-run paper, particularly that of General Motors if he receives an attractive offer. He has already sold most of his Ford Motor Co. and Daimler bonds, he says.

Credit Suisse First Boston is launching syndication today of a credit facility backing Francisco Partners' acquisition of GE Global eXchange Services (GXS), a business-to-business e-commerce company. A banker said the $210 million credit comprises a six-year, $175 million institutional tranche and a five-year, $35 million revolver. Pricing and ratings on the facility have not yet been set. CSFB bankers did not return calls.

Collateralized debt obligation market players are pointing to the J.H. Whitney Market Value Fund as perhaps the first market value CDO transaction to ever be downgraded. This prompted one dealer CDO analyst to point out that in such cases the CDO collateral manager is supposed to sell the assets to pay out the note holders. The deal, first rated in 1999, has been downgraded three times by Moody's Investors Service this year. Mike Deflorio, the portfolio manager at J.H Whitney & Co., did not return several calls seeking comments. Gus Harris, head of Moody's CDO group, declined to comment. Standard & Poor's and Fitch Ratings did not rate the transaction.

High-yield was mostly unchanged in light trading through Thursday. Despite the poor week in equities, strong inflows from the previous week helped bolster the market somewhat. A deal from Gray Broadcasting was expected to price last Friday or today. Here was selected action.

Crown Cork & Seal was a popular credit in the secondary market last week, with dealers citing trades of the company's revolver in the 88-89 context. One analyst said investors were pleased that the company was able to pay down $234 million in notes due Sept. 1, as there was some concern that the company would not be able to handle its 2002 maturities. The paper rallied from the 85-87 range, where it had been languishing at the end of August, according to LoanX.

Investors are reviewing Bank of America and Salomon Smith Barney's credit for Rayovac Corp. after being offered a LIBOR plus 31/ 4% spread and a 10 basis points upfront fee for the $375 million "B" piece. One banker familiar with the deal said two or three tickets came straight in after last Wednesday's bank meeting, but she declined to comment on the amounts. Investors are working through the credit, and feedback is expected this week, she added. Buysiders and bankers said it was way too soon to call whether pricing would need to be adjusted, although a few buysiders were optimistic spreads would remain high for the rest of the year.

J.P. Morgan and Credit Suisse First Boston today are launching syndication of a financing package backing J.P. Morgan Partners' $539 million acquisition of Brand Services from DLJ Merchant Banking. The bank portion comprises a $150 million "B" term loan and a $50 million revolver, which will be undrawn at closing. Pricing on the seven-year "B" piece is LIBOR plus 31/ 4%, while that on the six-year revolver is LIBOR plus 23/ 4% with a 50 basis point commitment fee.

London and Capital Asset Management, which manages roughly $200 million in fixed-income assets, is in the market for a head of fixed income. Cliff Ongley, compliance officer, says the firm would like to fill the recently vacated spot as soon as possible. The new hire should have expertise in a wide range of fixed-income sectors--from investment grade to high yield to emerging markets--and be comfortable handling debt issued in a wide range of currencies.

Metals USA, a Houston metals processor and distributor, is talking to five undisclosed banks about refinancing a $100 million credit facility led by Bank of America, as part of its strategy to exit Chapter 11. Michael Kirksey, ceo, told sister publication Corporate Financing Week that he expects to have a $175 million credit facility to replace the B of A loan.

A small piece of the New Orleans Hornets' revolver was believed to have changed hands at around 101 1/2 last week. These are assets that people feel comfortable with, one dealer noted, explaining why the pro-rata was able to trade above par.

Wachovia Securities is launching a $450 million bank deal backing Gray Television's $502.5 million acquisition of Stations Holding Company, which is comprised of 15 of Benedek Broadcasting's stations. The loan comprises a $75 million revolver priced at LIBOR plus 3% and a $375 million "B" term loan priced at LIBOR plus 31/ 4%. It is undecided whether the "B" tranche will be sold at par, one banker said. Calls to Jim Ryan, cfo of Gray, were not returned. A Wachovia banker declined to comment.