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IASIS Healthcare's $463 million refinancing, led by BNP Paribas and Bank of America, and Goldman Sachs' $350 million "B" term loan for Verizon Wireless of the East were both pulled from the market last week as investors demanded terms unacceptable to the issuer in an environment starkly different to just last month. IASIS, a healthcare company with improving performance, was looking to opportunistically cut pricing and push out maturities, explained John Doyle, treasurer. "Six weeks ago it would have been a slam dunk," he said. The banks were able to build the book, but only after flexing pricing from LIBOR plus 31/ 2% to LIBOR plus 4% on the $339 million "B" term loan, he noted. This flex up in pricing was so steep that the deal no longer made sense for the company.

Chris Mahony, portfolio manager at J & W Seligman, is planning to shift 20% of the firm's portfolio, or $400 million, from higher rated to lower rated investment-grade corporates. He says a stabilization of the stock market, as well as signs of the economy picking up in speed, will trigger the move. In particular, he will look at improvements in factory orders, industrial production and capacity utilization numbers. The rotation will consist of selling triple-A and double-A rated corporates. With the proceeds, he will buy single-A and triple-B names, he says. The anticipation is that, with the economic rebound, lower rated high-grade corporates will rally while the top of the spectrum will have offered its best returns, he says.

Kmart's three-year bank debt dropped more than 20 points last week after the company filed a motion to amend its debtor-in-possession facility. The debt had been in the 60s, but traded at 40 after the company asked to increase the size of its DIP facility by up to $500 million. Kmart said it would not draw on the extended line, rather it just wants the extra liquidity. According to a statement released by the company, there is still $1.5 billion undrawn on the $2 billion DIP facility. The bank debt currently is being quoted in the 36 range.

Land O' Lakes hosted an investor conference call last Wednesday to clarify some of the numbers discussed during its second quarter earnings call. Before the conference began, listeners were treated to the customary elevator music while they waited. But when the conference call started late, call participants believed that the music was playing because someone had put the call on hold. "Hello," they said. "Is someone on hold?"

Turner Investment Partners is looking to add some 10% to its corporate allocation in its intermediate and core products to take advantage of attractive yields in the asset class. Roger Early, who oversees $750 million in taxable fixed-income assets, says it will take at least until the end of the quarter before the allocation shift is complete. He declined to specify the exact dollar amount of the trade, but says it will be less than $75 million, as many of the short-duration products carry little or no corporate exposure. The firm will finance the trade by selling Treasuries and agency debentures, which Early says have benefited from the flight to quality and are overvalued relative to other asset classes.

This chart, provided by Citibank/Salomon Smith Barney Inc., tracks bid-ask prices for par credit facilities that trade in the secondary market. It also tracks facility amounts, ratings, pricing and maturities.

Standard & Poor's has revised its outlook on Cinemark USA from positive to stable following the company's postponement of a planned initial public offering and bank loan refinancing. "The postponement of the IPO due to weak market conditions will delay the expected improvements to Cinemark's capital structure and liquidity that were factored into the previously assigned positive outlook," said Steve Wilkinson, credit analyst. The rating agency affirmed Cinemark's corporate credit rating of B, but it withdrew its BB- rating on the proposed $250 million bank loan.

Jim Higgins, a managing director and New York-based head of the high-yield trading desk at Salomon Smith Barney, has moved to London, according to a buy-side trader and a trader at a rival firm who have spoken to people on Salomon's desk. The reason for the move could not be determined, nor could it be determined who would replace Higgins, or what his new responsibilities will be. Higgins could not be reached, according to a trader on the desk who declined to give his name. Mark Mulcahy, a senior high-yield trader on the desk, declined comment. Dan Noonan, a firm spokesman, was not available for comment shortly before press time.

Giant Eagle has decided to tap the institutional market for $300 million of its $550 million credit facility. According to Mark Minnaugh, cfo, the supermarket company wanted access to additional sources of capital and the ability to put longer-term debt in place. "We thought that our industry would be attractive to the market," Minnaugh said, adding that the notion was confirmed when the "B" tranche was oversubscribed.

URS scaled back its planned $250 million bond offering by $25 million as the market demanded a higher yield than expected. With price talk in the 12% range, Credit Suisse First Boston and Wells Fargo Bank were able to shift allocation to the "A" term loan of the accompanying bank deal, a banker said, adding that some covenants changed in the process. In addition, pricing reportedly was flexed up by an undisclosed amount on the $350 million "B" term loan, but this could not be confirmed. Pricing was set to open at LIBOR plus 31/ 2%. Calls to CSFB and Wells Fargo were not returned.

Wachovia Securities has underwritten a $340 million credit facility backing Veridian's $227 million acquisition of Signal, a provider of information technology and engineering services to the Department of Defense and other U.S. government agencies. In June, Wachovia provided Veridian with a $200 million credit, comprising a $70 million revolver and a $130 million "B" term loan, and the new line is an expansion of that facility, one banker explained. The new money will consist of a $160 million add-on to the term loan. Officials at Wachovia did not return calls.