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Fifth/Third Investment Advisors, is looking to add up to $360 million in higher quality corporate, mortgage pass-through and asset-backed bonds. It will sell Treasuries and agencies to fund the moves. Mitch Stapley, who oversees the money manager's $3 billion taxable fixed-income portfolio, says he is still not convinced that companies with lower credit ratings will be able to benefit from what may be an "earnings-challenged" recovery. Among corporate names, Fifth/Third is particularly eager to see further issuance from GE Capital. It bought a piece of last month's record-breaking issue, the 6.75% notes of '32, bringing its overall holdings in the name to roughly $45 million. Stapley says he would add up to $30 million more in the five- to 10-year range if GE continues to issue bonds to pay down commercial paper exposure, as is widely expected. That issue came at 109 basis points over Treasuries and had widened to 153 basis points over the curve as of last Monday. Stapley says he believes the company is fundamentally sound, and that spreads will recover from recent investor jitters over its reliance on commercial paper.

This chart, provided by Citibank/Salomon Smith Barney Inc., tracks bid-ask prices for par credit facilities that trade in the secondary market. It also tracks facility amounts, ratings, pricing and maturities.

London-based Rothschild Asset Management, which manages E3 billion in European fixed-income assets, is rotating out of swaps-related credits into cyclically sensitive names further down the credit spectrum. Adrian Grey, director, says swaps-related names, for example agencies, have tightened as far as possible and now the firm is looking to buy new issuance. Most recently, the firm bought Hilton Group's 6.5% of '09, a new issue, and sold a variety of maturities of German mortgage-backed securities, or Pfandebreifes. Grey says he will look at new issuance from investment-grade industrials when they become available.

The launch of fallen-angel Calpine's $600 million "B" term-loan was postponed from last Thursday to possibly a week from now and potential investors are saying the lead banks on the deal should take that time to increase pricing from LIBOR plus 23/ 4%. A lack of familiarity with the name and a downgrade last week from Moody's Investors Service are two issues putting pressure on the coupon, bankers and investors said. "The banks are having trouble getting Calpine done at current pricing, given this week's downgrade to Ba3 [by Moody's Investors Service]. New pricing is likely to be as high as LIBOR plus 33/ 4% with a discount," one hopeful investor said.

The Carlyle Group is ramping up a new $400 million collateralized debt obligation in a market that has left managers on recent deals challenged by the current dearth of available attractive credits. "We are really pleased with the execution of the deal and now the real challenge is to find assets," said Linda Pace, portfolio manager at Carlyle. The fund's latest deal, Carlyle High Yield Partners IV, is a deal which will comprise 90% leveraged loans and 10% high yield bonds. Pace said the fund is looking to have 45% of the deal's assets ramped up in roughly the next two weeks before the deal's close.

More than $15 million of Centennial Cellular bank debt crept up to the 81 level last week despite mixed investor opinions on the name. Market players explained that the pricing on the wireless company's bank debt had been pushed down by a few dealers dumping the paper in the mid 70s almost a month ago. The name has since recovered some ground with a $25 million auction at 77 on March 22, another $5 million reported to have moved to retail in the 78-79 context early last week and other trades were reported in the 80-81 by the end of the week.

Radio-giant Cumulus Media has chosen J.P. Morgan and Bank of America to lead a $400 million facility to refinance its former Lehman Brothers-led $175 million credit. The banks were chosen in part because of their capacity to offer the larger credit, said Dan O'Donnell, v.p. of finance for Cumulus. The banks approached the company before the old credit's maturity and the re-structuring process began when it was clear the company would go forward with the acquisition of Aurora Communications and the broadcasting operations of DBBC, he added. The company's cfo, Marty Gausvik, also had a previous relationship with J.P. Morgan.

Fleet Bank and Bank of America are set to launch a $300 million credit for Team Health on April 9 backing the $147 million acquisition of Spectrum Healthcare. The credit, which includes a $150 million "B" term loan, also refinances $110 million in existing debt led by the two relationship banks. A decision was taken to finance the acquisition with bank debt, rather than bonds or equity due to perceived investor appetite for healthcare in the bank market.

Société Générale is offering 1/4% for commitments to the National Basketball Association's Charlotte Hornets' $40 million term loan. Fees on the $35 million pro rata are 3/4% for $20 million and 1/2% for $10 million. The deal partially backs the proposed move to New Orleans, following a request to the NBA to relocate the franchise that is almost certain to go through at this point, said bankers.

Massive buyside demand for the SunTrust Bank and BANK ONE led "B" term loan for Atlanta-based Printpack pushed pricing down from a starting point of LIBOR plus 31/ 4% to LIBOR plus 23/ 4% during syndication. "Almost $900 million came in on the targeted $200 million credit," said Trip Ceitter, treasurer of Printpack. "Initially we even considered going out at LIBOR plus 31/ 2%," he added. The seven-year "B" piece was upsized from $50 million to $250 million, while the pro rata was reduced from $200 million to $150 million. "The pro rata was full at $200 million, but we decided to move to the "B" as pricing had come down to similar levels [as the pro rata] and the maturity was longer," he explained.

KBC Bank has returned to the market with its $252 million Perryville Power construction loan for Mirant and Lousiana utility Cleco, and is looking for retail participants. A banker familiar with the deal said the original syndication was suspended last summer due to an issue over air permits, which have recently been received. About 15 banks are said to be looking at the loan, after 23 banks attended the meeting two weeks ago.

Kmart's bank debt traded out of retail with a $7 million auction at 68 last week as investors are more certain that company subsidiaries, which guarantee the bank debt, have sound value. The pricing on the name has fluctuated weekly since the company filed for bankruptcy in January. The name fell as low as 53 in mid-February and rose as high as 70-71 two weeks later.