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Adelphia Communications' Century Cable bank debt took a hit last Wednesday falling from the 99 range to 98 1/4 98 3/4 after its earnings release disclosed more than $2 billion in debt under the company's "managed entities." Dealers moved roughly $20 million of the paper.

Credit Suisse First Boston is looking to beef up its presence as a structurer of high-yield credit derivatives. Joe Russell, global head of leveraged finance trading, says the firm will look to add two senior traders and possibly a structurer, though it has yet to be determined whether CSFB will move people internally or hire from outside. Russell says credit derivatives, traditionally associated with investment-grade credits, have increasingly begun to trade on high-yield and bank loan desks. Russell attributes the increased popularity to the increasingly volatile credit environment of the last 12-18 months. He would not disclose specific clients who have demanded credit derivatives, though he says the product is particularly popular with hedge funds.

Deerfield Capital Management is planning a second quarter launch for its newest collateralized loan obligation, Bryn Mawr. The $300 million structure has not been officially warehousing assets yet, but will look to do so next month, said Jonathan Trutter, portfolio manager at Deerfield. The deal will comprise 100% leveraged loans that are mostly par names with Bank of America underwriting the liabilities (LMW 2/18). A reverse inquiry from a past equity investor prompted the deal.

More than $10 million of Exide Technologies' debt traded down to the 62-64 range last week from 66 earlier last month as the expiration of the company's covenant waivers approaches. The company has waivers on its financial covenants until April 12 and traders believe the company might opt to file for bankruptcy protection.

Fidelity Investments has created a new position by adding a European fixed-income business development slot and has hired Martin Hall, formerly head of fixed-income at Norwich Union Investment Management to fill it. Martin, who will report to David Stewart, president of European institutional business, will be responsible for business development in the U.K. and Europe, says a firm spokeswoman. Fidelity manages roughly £8 billion in fixed-income assets in the U.K. and Hall was brought on board to help meet the new business opportunities created by European pension funds' increased interest in fixed-income investing.

Onex, a Toronto-based private-equity firm, teamed up with Oaktree Capital Management to purchase Loews Cineplex Entertainment by swapping bank and bond debt for 100% of equity. The acquisition coincides with Loews' emergence from bankruptcy with Deutsche Bank, the pre-petition lead lender now providing a C$140 million exit facility. "Before Loews filed for bankruptcy last year, Onex got involved by taking a strong position in the distressed bank debt while Oaktree had a position in the bonds and bank debt," explained Tim Duncanson, Onex principal.

Rotech Healthcare's $275 million deal broke for trading last week and roughly $50 million traded in the 100 1/4-100 3/4 range. During syndication the oversubscribed deal was highly popular with institutional investors looking to scoop up the recently spun off Integrated Health Services subsidiary. As a result, buy-side allocations were said to be slim (LMW, 3/18).

Putnam Investments has begun a search for a credit analyst to support its high-yield collateralized debt obligation research effort, says Steve Peacher, cio with the Boston-based asset management firm. Peacher says the new hire would work on a day-to-day basis with Neil Reiner, high-yield portfolio manager, although he would report directly to Paul Quitsberg, senior v.p. and head of research.

RCN, the fiber optic services company locked out of the capital markets for the foreseeable future, has struck a deal with its lender group that increases the interest spread on the bank debt and also reduces the overall lending commitment. "RCN will pay down $187.5 million on its term loan, with cash on hand, and will reduce the size of the pro rata," said Kevin Kuryla, director of investor relations. Interest rates will go up to around 6 1/2% to 7% all-in, but that is still comparatively cheap, he added. RCN has been pressured by competition from incumbent digital subscriber line and cable modem providers. In the past year, competitors have been more aggressive in their offerings of high-speed data services, the growth driver under RCN's competitive business model. Two weeks ago RCN's bank debt jumped nearly 10 points in about $30 million in trades as the market started to buzz about an imminent paydown (LMW, 3/25).

Société Générale has filled the bank deal for the Pittsburgh Penguins of the National Hockey League and launched the National Basketball Association's Charlotte Hornets credit last Wednesday in New Orleans. The Hornets transaction is a $75 million refinancing that has been funded but not yet syndicated. The deal partially backs the proposed move to New Orleans, following a request to the NBA to relocate the franchise. A response is expected from the league in early April.

CIBC World Markets and Deutsche Bank's $278 million credit for Trans-Elect, backing the acquisition of The Michigan Electric Transmission Company was well oversubscribed only hours after launch last Wednesday. The loan is split into a $200 million "B" tranche at the operating company level, a $25 million revolver, and the remainder is an up to $53 million loan at the holding company level. Pricing on the "B" and revolver is LIBOR plus 23/ 4%, while the holding company loan is priced at LIBOR plus 33/ 4%. "The holding company loan is structurally subordinated to the opco loan," said a banker, explaining the differential. A flex has not been decided on yet, he added.