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WestLB's long awaited refinancing of UK water company Mid Kent Holdings is expected to reach the market later this year through Artesian, the water finance vehicle sponsored by RBS Financial Markets. Even as news of the securitisation broke, RBS was completing its second deal through the vehicle, a £35m securitisation of Dee Valley Water, a water-only company based in North Wales (see EuroWeek 765).

Nextel Communications' B/C tranche was seen trading in the 85 1/2 86 1/2 range last week. Traders said the name got a boost from news that Cingular Wireless was talking with VoiceStream about a possible merger. Last week's revival props up Nextel's levels from the low 80s, where the paper was trading as a result of pressure from the WorldCom scandal.

The $7.05 billion acquisition of QwestDex, the directories business of Qwest Communications International, by The Carlyle Group and Welsh, Carson, Anderson & Stowe is set to alter the landscape of the leveraged loan market this fall. The two private equity firms are set to borrow approximately $3.1 billion of senior secured bank debt and are tapping the bond market for an additional $2.5 billion, one banker said. Combine that with other large financings for Burger King and Del Monte Foods, and investors could be deluged with bank debt. Spokespeople for the private equity firms did not return calls.

The $7.05 billion acquisition of QwestDex, the directories business of Qwest Communications International, by The Carlyle Group and Welsh, Carson, Anderson & Stowe is set to alter the landscape of the leveraged loan market this fall. The two private equity firms are set to borrow approximately $3.1 billion of senior secured bank debt and are tapping the bond market for an additional $2.5 billion, one banker said. Combine that with other large financings for Burger King and Del Monte Foods, and investors could be deluged with bank debt. Spokespeople for the private equity firms did not return calls.

SpectraSite Communications has amended its $1.3 billion credit facility to ease covenant pressures as it seeks to restructure a burdensome debt load. The amendment, which required 50% approval from the company's bank group, waives certain potential default events through September of next year and allows the sale of the company's network services and broadcast businesses, according to Tabitha Zane, v.p. of investor relations. "Lazard has been retained as an adviser, although there is no current restructuring proposal out there," Zane said, adding that the Cary, N.C., wireless tower operator simply has too much debt on its books.

UBS Warburg is preparing to lead a debt financing package backing the $300 million acquisition of Nellson Neutraceutical by a partnership between Fremont Partners and existing management. The San Francisco-based sponsor is putting approximately $180 million of equity into the deal, and the leverage will consist entirely of bank financing, according to one banker. The financing is likely to be structured as a $120-130 million institutional term loan complemented by a $10-15 million revolver, but details have not yet been finalized. An official at Fremont and a UBS banker declined to comment.

Fleet Capital has been selected to provide a $336 million credit facility for Republic Engineered Products, a new company sponsored by KPS Special Situations Fund and Hunt Investment Group. "KPS and Hunt bought six plants of Republic Technologies International, which was in Chapter 11 proceedings, and the new company was created," explained Mike Psaros, a managing principal at KPS.

Flagship Capital Management, the loan investment subsidiary of FleetBoston Financial, is in the market with its second collateralized loan obligation, a $400 million vehicle called Flagship CLO-II. Flagship was founded two years ago and is a consistent investor in the leveraged loan market, according to a source, who said the firm's latest effort is about to come to market to rate the liabilities. The source could not comment on what percentage of the collateral has been raised or likely pricing on the liabilities.Ty Anderson, ceo of Flagship and a Fleet veteran, declined to comment on the vehicle. Calls toGoldman Sachs, which is the underwriter for the CLO, were not returned.

Genesee & Wyoming is boosting its borrowing capacity in anticipation of future acquisitions and has tapped Fleet National Bank for a new $250 million credit. "We are an acquisition-driven company, and it's important to have debt capacity because of cash deals," said Jack Hellmann, cfo. The railroad operator recently announced plans to acquire Utah Railway, a division of Mueller Industries, for $54 million in cash drawn from an existing $103 million revolver, but Hellmann declined to disclose any information related to future acquisitions.

Georgia Gulf has eased its covenant ratios to allow itself greater flexibility during an uncertain economy. "As we look forward, we are uncertain as to the speed of the [economic] recovery," said Richard Marchese, cfo. Marchese noted that the current market environment was responsible for the timing and completion of the amendment.

Kmart's bank debt regained some ground last week, with a trade occurring at about the 40 level. The paper had sunk more than 20 points to the mid-30s two weeks ago after the company filed a motion to amend its debtor-in-possession facility, including the request for an additional $500 million of availability and relaxed covenants. The company has since sought to clarify the market's misunderstanding of its cash-burn rate and its funding needs (LMW, 8/19).

Lyondell Chemical's term loan "E" dipped below par last week, trading as low as 98 1/2 before ticking back up to the 99 level on Thursday. Dealers said the name had traded in small pieces south of par because of general concerns with the chemical sector. "Chemical companies are taking a beating," one trader said, noting that rising prices for crude oil and raw materials were causing some of the pressure.