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More than $100 million of Warnaco Group's bank debt traded in the 30-32 range last Wednesday after the company told investors it is pursuing a stand-alone plan rather than seeking a merger or acquisition. The trading that followed was likely the work of arbitrage players getting out of the name after buying it in hopes of a quick M&A deal, said Jim Fogarty, company cfo. "We are not in liquidation. We have been running an M&A process and putting together a stand-alone plan," said Fogarty. But as the bankrupt company focuses on maximizing value, the best option is a stand-alone plan, he said.

An amendment requiring a 51% vote was approved last week by investors on the Appleton Papers deal, giving Bear Stearns permission to create a "C" tranche on the debt. But buysiders said completely filling the tranche should prove challenging as existing investors in the senior part of the deal are especially unhappy with the company's plans to draw down on the bank debt to pay down $50 million of outstanding senior subordinated notes.

Amid continued volatility in energy and utilities names such as Reliance Energy (A3/A), Dynegy (Ba1/BBB), El Paso (Baa2/BBB+), CMS Energy (Ba3/BB) and NRG Energy (Baa3/BBB-), analysts are offering a few names they say are not likely to be subject to the price swings of their peers. Wisconsin Energy (A2/A-), SCANA (A3/A), Southern Company (A3/A), Keyspan (A3/A) and Energy East (Baa2/BBB+) are all relatively stable, because they do not rely so heavily on trading profits, says Carol Levenson, director of research at Gimme Credit, an independent research firm. However, she warns that most are expected to sell assets to avoid rating downgrades, and concedes that few of these names are exceptionally cheap. Names she believes could outperform the sector are Dominion Resources (Baa1/BBB+) andExelon (Baa2/A). Dominion's 6.625% notes of '13 were bid at 204 basis points over Treasuries last Tuesday, while Exelon's 4.75% notes of '11 were 304 basis points over the curve. She also believes that Duke Energy (A1/A+), which does count on trading profits, may benefit from a flight to quality in the sector. Duke's 6.25% notes of '12 were 102 basis points over Treasuries.

UBS Warburg has hired Troy Dixon, a veteran pass-through trader fromCredit Suisse First Boston to fill some of the gaps created by the departures of collateral traders Dave Brown andJohn Morris, according to pass-through trading chiefBrian Cohane. Dixon, who left CSFB approximately two weeks ago and will join the firm on June 17 after his "garden leave" non-compete expires, will trade the 30-year Fannie Mae/ Freddie Mac sectors and report to Cohane. Dixon had been at CSFB since July 2000, coming from Donaldson, Lufkin & Jenrette, which he joined in May of that year. Prior to that, he was trading MBS at Nomura Securities International.

Ellen Luntz, a director of loan sales at Barclays Capital, has reportedly moved to BNP Paribas, where she will be working as senior salesperson, handling both primary and secondary sales. Luntz will begin working next Monday and will report to Bucky Kahn and Dan Whalen, co-heads of syndication, trading and placements. At Barclays, Luntz reported to Dhuane Stephens, head of sales for the bank's loan group. Luntz began working at Barclays early last summer when she was hired as part of the bank's effort to beef up its par desk. Before that, Luntz worked at Goldman Sachs. A BNP spokesperson did not return calls by press time. A spokeswoman from Barclays confirmed Luntz's departure.

Investors poured into Fleming Companies' $350 million "B" loan even as they chirped for a juicier spread. Now they are hoping there will not be a flex down. The deal was more than two times oversubscribed and the company is weighing its options. "It is still too soon to say whether there will be an upsize or a price flex, but considering the progress of the "B" it is obviously something to think about," said Matt Hildreth, senior v.p. and treasurer of Fleming. Deutsche Bank and J.P. Morgan lead the credit, which is currently priced at LIBOR plus 21/ 4%. But there is opposition to a flex of yet another credit. "The buyside would be pretty [angry] if pricing went lower. It's getting uneconomical for a lot of them," one banker said.

Small pieces of Adelphia Communications' Century Cable facility were said to have traded in the 88-89 range last week as the market waited out whether Adelphia would obtain a waiver on its bank debt after a grace period for the company to file its 10K expired on May 30. By Thursday afternoon the company had reportedly received a 14-day waiver.

Credit Suisse First Boston and Salomon Smith Barney launched a $375 million term loan "B" for Terex on May 31, that will refinance existing debt and back the acquisition of Demag Mobile Cranes. A banker said the seven-year "B" loan has a spread of LIBOR plus 21/ 2%, while the company currently carries a BB-/Ba3 rating. The company's lifting equipment includes cranes, material handlers, work platforms, and similar devices for construction and industrial customers.

Credit Suisse First Boston has lost another European credit strategist from its London-based team. Christopher Cloke-Brown left the firm last week, just a few days after Evan Kalimtgis, head of European credit strategy, resigned to join Dresdner Kleinwort Wasserstein, according to officials familiar with the move. A senior CSFB research official would not confirm Cloke-Brown's departure, but said he was actively looking to replace Kalimtgis. Cloke-Brown's destination could not be learned by press time.

Merrill Lynch has lost a multi-billion euro mandate to Deutsche Bank for a collateralized loan obligation because of the defection of two key bankers from Merrill to Deutsche Bank, according to several high-level European securitization officials. As reported by LMW sister publication BondWeek, the mandate from Bankgesellschaft Berlin originally won by Merrill, was pulled after two of its German securitization bankers left for Deutsche Bank, said officials.

Fitch Ratings has added an analyst to its London-based asset-backed commercial paper team as part of its effort to staff up structured finance coverage. Emma-Jane Fulcher, who used to run ING Barings' Mont Blanc commercial paper conduit, will join next week and report to Fiona Steel, associate director, European structured finance. Steel says Fitch now has four analysts covering European commercial paper and may make more hires next year. An ING spokesman did not respond to inquiries concerning Fulcher's replacement by press time last Thursday.

Goldman Sachs and J.P. Morgan will launch syndication of a $450 million bank deal and $275 million of subordinated debt for GS Capital Partners 2000 in late June, backing the acquisition of Berry Plastics with a highly leveraged deal that is expected to test market appetite for the expected spate of leveraged buyouts in the works. Bankers said the debt package will comprise a total leverage multiple well over five times--an aggressive play for a plastics company.