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Goldman Sachs' and Bank of Nova Scotia's $250 million "B" loan for Las Vegas-based Venetian Casino Resort blew out in just two hours last week, surprising many in the market who believed the current appetite for gaming credits stopped at the door of the world's most famous gambling resort. "This is noteworthy, it is a success flying in the face of wisdom that only non-Vegas multi-asset resorts are attractive."

Steve Kolhagen, the head of Wachovia Securities' derivatives and high-grade bond businesses, has decided to retire after 20 years on the Street to write mystery novels with his wife. Kolhagen says that he was simply ready to "pursue something that I've had an interest in for about 10 years now," noting that although his wife has written two books, he will be learning as he goes. He says the retirement will take effect July 31, and that he will be a consultant to the firm for the balance of the year. Kolhagen says the firm is currently undertaking a search for a suitable candidate who would be based in Charlotte.

Warnaco Group's bank debt saw some action last week with more than $30 million trading in the 30-31 range this follows a massive $140 million auction from a Japanese bank at that level two weeks ago (LMW, 5/6). Dealers said the paper moved in two pieces, including one $15 million piece at 30 1/2 and another $15-20 million piece at 30 3/4. The company plans to have its restructuring plans in place by the end of June and the name has been trading up from the 24-26 range where it was last month.

It was dead quiet in the market, with just $2.3 billion in investment grade supply priced. Average deal size continues to trend down (just $314 million for the week) reflecting the fact that the calendar is dominated by smaller, off-the-run issuers. The sudden drop in supply reflects the reluctance of issuers to test the primary market in size during the current market turmoil. This is particularly true of the beleaguered telecom sector where Deutsche Telekom is waiting on the sidelines to launch a deal that will reportedly be in the EUR5-8 billion range. In investor presentations in Europe last week and the US this week DT has confirmed that the deal, when launched, will be split between dollars and euros but has made few other references to potential structure or confirmed timing, acknowledging that the market mindset is currently too distracted to ensure a successful reception.

WorldCom is the topic of conversation as market players speculate on how the company will treat its $2.65 billion, 364-day facility with term-out option. Many dealers believe that the company will draw down on the $2.65 billion, 364-day credit facility with term out option and then begin its negotiation process. The market for the paper rose last week to the 80s from the 60s-70s level as the market expects it will negotiate a $5 billion credit facility.

Playtex Products is returning to the market with a seven-year, $470 million term loan "C" via sole lead arranger and administration agent Credit Suisse First Boston. Pricing on the line is a skinny LIBOR plus 21/ 2%, which is 75 basis points below pricing on the $325 million "B" tranche arranged this time last year (LMW, 5/3/01). The bank meeting was held last Thursday for the BB-/Ba3 name. Officials at Playtex did not return calls.

Credit Suisse First Boston is looking to hire an asset-backed securitization banker specializing in the Spanish market for its London ABS team, says an industry official. The new hire, who will replace a banker who has moved internally, will report to Lourdes Moreno, co-head of securitization in London. Calls to Moreno were not returned.

Credit Suisse First Boston has brought all of its European debt businesses together into one unit, including origination, securitization and credit derivatives. John Zafiriou, head of European fixed-income, says the firm is moving to one platform to take a unified approach to clients. The unified group will also include treasuries and short-term instruments, foreign exchange, asset finance, liability management, corporates, financial institutions and sovereigns. J.P. Morgan Securities has a similar organizational structure. No layoffs are believed to be involved in this move.

FAO, formerly Right Start, has rolled two asset-based lines into one $127 million facility on the heels of acquiring toy-stores Zainy Brainy and FAO Schwarz. The company put in place a $115 million, three-year revolver for its Zainy Brainy acquisition in September and also used an existing $10 million, four-year revolver it secured in January 2001. Both were led by Wells Fargo. The $10 million line was increased to $24 million for extra liquidity when the company acquired FAO Schwarz in January 2002 with the expectation that the lines would be consolidated in the spring.

Radian Asset Assurance has added Chris Allen and Michele Kearns as v.p.s in the global structured products division of its London office. Both will start next week and report to Ned Bowers, managing director and head of global structured products, who is based in New York. Elizabeth Emmons, a spokeswoman with the Radian Group, Radian Assurance's parent company, says both positions were created to expand Radian Asset Assurance's presence overseas. The two securitization pros will work at structuring and originating collateralized debt obligations, asset-backed securities and asset-backed commercial paper, she says.

Aurora Foods bank debt took a hit last Tuesday trading down to the 92 range off from the 97-98 range after the company reported poorer than expected losses, including a $20 million pretax charge. One trader referred to the trades as a "panic sale." Dealers said the market for the name had risen again to the 94-95 context by midweek. The company has been working on a turnaround plan for the last 18 months, but market players said that lenders were getting weary with the name.

Owners and managers of large Hong Kong companies took advantage of a Hong Kong stock market rally this week to launch two large block trades and one equity-linked issue. Merrill Lynch sold a large domestic currency convertible, raising HK$1.5bn for Sino Land. BNP Paribas Peregrine completed a bought deal to sell almost 10% of Shangdong International Power. HSBC also got in on the act, selling HK$734m of new shares for Industrial and Commercial Bank of China (Asia).