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RBC Capital Markets is working toward closing its debut $400 million collateralized loan obligation early next month and has hired Nicholas Daifotis as managing director and head of high-yield origination and capital markets as part of the group's ongoing build-up of its acquisition financing for the middle market. "Hiring Nicholas Daifotis [from Barclays Capital] is a prelude to hiring more on the high-yield origination side of the business," said Ken Kencel, co-head of RBC Leveraged Capital. RBC Capital also is talking to some senior-level people about running the loan syndication side of the business, he added.

The $1.05 billion in new bank debt for Six Flags Theme Parks is well covered in the event of a default scenario, but the holders of $1.7 billion of unsecured debt could be in for a hairier ride. The bank debt is rated Ba2 and debt-to-EBITDA is inside 2.5 times, but total leverage is around six times and so the unsecured is B2, explained Moody's Investors Service senior analyst Glenn Eckert. One concern cited by Eckert, though, is if Six Flags ran into operational issues and had to be an asset seller. As the premier buyer and consolidator, financial sponsors would be a possibility, but Six Flags usually buys competitors, he explained.

SLI, a lighting company dealing in lamps and fixtures, was bumping up against the end of waiver period and looking for a long-term amendment as LMW went to press Friday. The name has drawn attention in the secondary market over the past two weeks, with big pieces reported to have traded in the 40s. Last week a $15 million piece was believed to have traded out of a Japanese Bank in the 45-46 range. Traders said that a $20 million piece traded in the 46-47 range two weeks ago.

Titan is making the distinction between its credit bank and its investment bank by choosing Wachovia Securities to lead its new $485 million credit rather than incumbent Credit Suisse First Boston, according to Mark Sopp, senior v.p. and cfo. The company wanted to make a clear distinction between its credit bank and its investment bank to avoid a potential or perceived conflict of interest and was seeking assured objectivity from its banks in relation to future financing needs, explained Sopp. CSFB will remain in Titan's relationship bank group, but will be involved primarily with the company's investment banking business.

Credit Suisse First Boston and National City Bank last Friday launched syndication of a refinancing for OM Group. The move is described by bankers as "an opportunistic refinancing, to take advantage for current investor appetite." The BB/Ba3 $600 million "C" tranche is priced at LIBOR plus 2 1/2%, down from the current LIBOR plus 3% spread. The debt was originally incurred to finance the acquisition of German chemical company Degussa last year. The new tranche has a five-year tenor. OM Group is an international producer and marketer of value-added, metal-based specialty chemicals and related materials.

Trinity Industries, a Dallas-based railcar company, tapped the "B" loan market for the first time as part of a $400 million refinancing led by J.P. Morgan. The new loan replaces a $450 million, 364-day revolver, also led by J.P. Morgan, set to mature this month. "The aim is to diversify the bank group and get a longer-term commitment," noted Neil Shoop, treasurer of Trinity.

Deutsche Bank last week launched syndication of a $700 million refinancing for Graham Packaging, part of a wider plan to extend the maturities of its long-term debt, reduce interest expense and improve flexibility. The new loan is split into a $550 million "B" loan and a $150 million revolver, both priced at LIBOR plus 2 1/2 %. The current institutional tranches are priced at LIBOR plus 3%. A banker said Graham also is issuing $100 million of senior subordinated notes via Deutsche Bank and Salomon Smith Barney.

Dealers are taking a look at Farmland Industries, which filed for bankruptcy at the end of May. Spreads are wide in the high 80s to low 90s, and no trades could be confirmed. Although the $350 million asset-based revolver is fully backed and bank debt holders could receive substantial recovery if liquidated, negotiations to recover the loan could be tough because the company's members also are the holders of its subordinated notes.

Seneca Capital Management has made a number of new hires, according to Gail Seneca, the San Francisco buy-side firm's cio and ceo. They are Tom Haag, a high-yield portfolio manager, Troy Grande, a mortgage- and asset-backed portfolio manager, Fred Goetsky, a corporate bond analyst, Cory Kilpack, a credit analyst from American General, and Bob Bishop, a corporate bond trader and analyst. Seneca says she now considers the firm fully staffed.

Tech, telecom, and cable names all took a beating last week, or as one trader put it: "If it beeped or flashed, it crashed." Energy, chemicals, and gaming were all relatively quiet. Airlines were slightly weaker due to the "dirty bomb" scare. Here is some other action.

Jefferies & Co. will underwrite a $210 million eight-year issue of senior secured notes in a Rule 144A offering by Riviera Casinos, according to Duane Krohn, Riviera's treasurer. The issue, which will be used to take out notes maturing in '04 and '05, is expected to price early this week. A call toSteve Baker, a senior capital markets official at Jefferies, was referred to Tom Tarrant, a company spokesman, who declined comment.