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ABN Amro Asset Management is looking at developing a sterling-denominated pooled corporate bond fund for its U.K. pension clients. Alan Higgins, London-based head of global fixed income, says the firm has not finalized plans for the new product, but is considering it in response to client demand. The new fund will likely invest exclusively in investment-grade bonds. ABN Amro Asset Management manages roughly $8 billion in fixed-income assets from its London office.

More than $40-50 million of Adelphia Communications' Century Cable facility changed hands in the 78-81 range after its operating company, Century Communications, filed for bankruptcy last week. The name had traded as low as 83 1/2 two weeks ago. "People are trying to find out where the right levels are now that it has moved into distressed," said one dealer concerning the trades. Market players also are trying to anticipate which of the company's operating subsidiaries is the next to file and when that will be. "That's the million dollar question," said one trader. Calls to Adelphia's spokeswoman were not returned by press time.

High-yield portfolio managers and a sell-side analyst say the high-yield auto parts sector has only a small number of credits worth betting on, in spite of two recent successful deals. Given issuers' propensity to grow largely through acquisitions, the potential for off-balance sheet financing is considerable, says a New York-based portfolio manager. Eric Green, high-yield portfolio manager at Penn Capital Management in Cherry Hills, N.J., says that while it is necessary to be particularly careful in this sector, he says there are still opportunities to pick up yield. He cites vehicle transport company Allied Holdings' 8.625% notes of '07 (Caa1/CCC+), which were trading at 82 last Monday, as one example of an issue he expects to appreciate further. Green would not say at what price he would sell the issue.

J.P. Morgan, Salomon Smith Barney and Morgan Stanley are leading the charge on a repricing for Resolution Perfomance Products that would shave 100 basis points off the LIBOR plus 33/ 4% the company is paying on its "B" term loan. A banker said the company is in aggressive de-leverage mode, and only about $225 million is left from the original $350 million "B" loan. The three banks held a meeting last week via conference call.

Two new collateralized debt obligations feature triple-A tranche pricing is tighter than the recent market has seen, and that pricing is expected to shrink further as investors increasingly opt to invest in CLOs over other structured vehicles. The triple-A notes for Atrium CDO 1, managed by Credit Suisse Asset Management, and Aurum CLO 1, managed by Stein Roe Farnham, priced at LIBOR plus 43 basis points last week, according to J.P. Morgan analyst Christopher Flanagan. He explained the pricing is due to healthy demand for CLOs accompanied by tight spreads in the underlying collateral markets. The spread over LIBOR is only two basis points lower than what the market had been seeing, but it is significant, buysiders said. "It definitely makes a difference, especially if you are paying a quarterly dividend," one CLO manager said.

J.P. Morgan and Bank of America are in the market with a $1.25 billion redux for Community Health Systems, a Forstmann Little & Co. investment, and are looking for a major price cut on the institutional tranches. The current "A," "B" and "C" tranches are priced at LIBOR plus 3%, 31/ 2% and 33/ 4%, respectively. But the banks want to roll those lines into one $800 million "B" tranche priced at LIBOR plus 21/ 2%. A $450 million revolver also is being refinanced, said a banker.

Corrections Corporation of America has secured a new $715 million credit facility with the goal of improving its credit rating and paying down its debt. The new loan is structured so the company can continue to pay down debt, try to draw its rating higher and become a better borrower later on, noted Irving Lingo, executive v.p. and cfo. "We have successfully been able to get our credit ratings increased," he said, noting an improved B1 rating from Moody's Investors Service and a B+ rating fromStandard & Poor's.

Tyco International's February 2003 bank debt was traded in the high 80s early last week before sinking along with the company's 4.95% notes maturing in August 2003. The name rose back to the high 80s again on Thursday after news that the Securities and Exchange Commission reportedly has cleared Tyco to spin off the CIT Group by issuing 200 million shares for between $25 and $29 a share. This move is looked at positively by investors, who noted the company's near-term liquidity issues.

Fitch Ratings has downgraded Tyco International's senior unsecured debt to BB from BBB citing the concerns about the company's ability to execute its strategic plan, liquidity and near-term debt maturities and shortcomings in corporate governance.

Owen Cheevers, the former head of high-yield research at BMO Nesbitt Burns, has filed a $100 million arbitration claim with the National Association of Securities Dealers against his former employer, arguing that he was terminated because "he refused to acquiesce to improper demands made upon him by the firms investment bankers, to manipulate his research recommendations." The statement of claim, a copy of which was obtained by BondWeek, says that the firm's telecom group investment bankers "killed his [radio industry] research report after he declined to change his recommendations." He further alleges that his complaints about this interference to his superiors and the firm's compliance department directly resulted in his termination.

Hong Kong Hongkong Electric has launched a HK$1bn callable FRN via Barclays Bank (Hong Kong). Due July 2010 or callable after six years, it has a margin of 36.5bp over three month Hibor and an issue price of par; if not called, the margin steps up to 100bp over Hibor.

Australia Foodland Associated this week announced plans to acquire and expand. Woolworths New Zealand, agreeing to pay NZ$690m plus debt. Foodland is funding the acquisition partly through an accelerated A$295m share issue to institutions, which was due to be completed today (Friday). Foodland also plans to offer about A$30m of new shares to existing shareholders.