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Approximately $10 million of Safety-Kleen's bank debt was said to have changed hands in the 51 range this week after the company got one step closer to selling its Chemical Services Division (CSD) to Clean Harbors. The name has been climbing up from the 32-33 range since the U.S. Bankruptcy Court approved an auction for the sale of CSD in mid-March. At that time, dealers said that all the major trading desks were looking to make trades (LMW, 3/18). Dealers said Safety-Kleen's environmental liabilities and a lawsuit from Laidlaw, which owns 44% of the company, still plague the name.

Last week's move by the Illinois state legislature to raise taxes on riverboat casino operators such as Argosy Gaming, Hollywood Casinos, Boyd Gaming and Mandalay Bay could inspire politicians in other states to push for similar legislation. That would cut into profits of these and other casino operators, says Jacques Cornet, gaming analyst at CIBC World Markets. Many riverboat casino operators have properties in several states.

Telecom Italia's announced debt reduction plans and revised outlook from Standard & Poor's, have analysts touting it as one of the best telecom credits in Europe. Last week, Telecom Italia announced plans to sell its 25% stake in Mobilkom Austria, which should bring in E700 million, and S&P revised the outlook on its credit ratings from stable to positive. "TI is probably one of the best names in the sector along with [British Telecommunications]," says Rick Deutsch, head of European high-grade credit research at BNP Paribas in London. He recommends the company's 61Ž4% of '12, because the steep curve makes the longer-dated paper a better value.

Credit Suisse First Boston and Citibank filled up the seven-year, $375 million "B" loan for Terex and even executed a 1/2% reverse flex to LIBOR plus 2%. The loan refinances debt and backs the acquisition of Germany's Demag Mobile Cranes.

The $145 million "B" loan being led by Bank of America and UBS Warburg for The Columbia House Company will likely be flexed or have some form of tweaking, according to bankers, who said the credit is presenting a tough sell. "It's a B2 credit and so the buyside is looking for a little extra to compensate for some added risk," explained a banker, who predicted a 1/4% or 1/2% flex. The "B" has a current spread of LIBOR plus 41/ 2%, which is 1/2% higher than the now subscribed Herbalife deal.

Approximately $25-35 million of Tyco International's February 2003 bank debt was auctioned in the 94-95 range last Thursday, although some said the market for the name was more accurately represented at the 93-94 level. Market players said the name was moving because investors are anticipating troubled waters ahead and wanted to lower their exposure to the company's paper. The bank debt has fallen from the 94 1/2 - 96 1/2 level, where traders had quoted it last week.

Dillard's, a Little Rock, Ark.-based retailer, switched its lead bank from J.P. Morgan to Fleet Retail Finance for a new $400 million credit line. "The new credit line replaces a $750 million revolver led by J.P. Morgan," stated Julie Bull, director of investor relations for Dillard's. She declined any comment on why the switch was made.

Domino's improved operating performance has triggered an upgrade from Moody's Investors Service, which raised the B1 rating on the company's $474 million bank debt to Ba3. Moody's also gives the company a stable outlook as the ratings agency anticipates continued improvement in operations and the reduction of debt.

Fitch Rating's commercial mortgage-backed securities group has been downsized, says Mary Metz, managing director and co-head of the CMBS group. She says the move was prompted by the firm's loss of market share due to notching by rival agencies Moody's Investors Service and Standard & Poor's (see story, page 1).

Issuers of high-yield bonds are increasingly seeking information from fixed-income portfolio managers through investor surveys or "perception studies" conducted by Thomson Financial's Corporate Group business unit. Thomson has conducted such studies with equity investors for some 10 years, but only began polling fixed-income investors last July, says Justin Brimfield, senior associate in the fixed-income strategic intelligence group at Thomson Financial. Brimfield says fixed-income investors have been increasingly on the minds of corporate investor-relations executives because companies are issuing more debt. Other fixed-income executives say companies are fielding more calls from buy-siders as they lose faith in sell-side analysts and ratings agencies in the wake of recent blow-ups such as Enron and WorldCom.

Some market players say a bond deal may be ahead for Lyondell Chemical. The company recently filed a shelf registration for up to $3.335 billion in debt or equity securities. That move, combined with a red-hot bond market and the non-call provision on the company's term loan "E" expiring last month, have investors looking for a bond deal that is going to pay down some of the company's bank debt.

In the words on one trader, last week's tone was very "stinky." Bonds of Conseco Inc., Echostar Communications, Regal Cinemasand Lyondell Chemical Companywere all off a point to a point and a half.