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Rapid City, S.D.-based Black Hill, an energy and communications company, has closed a $400 million revolving credit, after initially requesting $300 million. The credit facility is the largest financing in the company's history, said Dale Jahr, director of investor relations. Previously Black Hill had a couple of short-term credit facilities that it was looking to extend or renew as the old lines approached maturity. These lines totaled $290 million, but Black Hills is in a cycle of growth that requires more medium-term credit, hence the adoption of a $200 million, three-year tranche, in addition to a $200 million, 364-day facility. The facility was oversubscribed beyond $400 million, said Jahr, and Black Hills decided to increase the initial requested amount.

BANK ONE and Union Bank of California launched deals for Coraopolis, Pa.-based DQE Capital and its unregulated subsidiary Duquesne Light last week. According to bankers familiar with the situation, the bank meeting was done via a conference call and IntraLinks, a secure online environment for project and document management used for large leveraged capital markets transactions. The deals were originally set to launch last Thursday at the Millennium Hotel in downtown New York. IntraLinks is a secure meeting room on the Web, where project and relationship management teams schedule, conduct and manage business interactions online.

Bankers said Deutsche Bank's planned $500 million credit for Xerox is currently on hold following the company's latest $1 billion financing agreement with GE Capital. Deutsche Bank was expected to bring the credit to market this month in an effort to provide the company with added liquidity to the $2 billion in cash the company has on hand. Market sources said Deutsche Bank is sitting on its commitment as the company determines whether or not it will need the additional capital. "This has nothing to do with the events of Sept. 11," one banker clarified. Xerox CFO, Barry Romeril, did not return calls. Kevin McKee, spokesman for Xerox, declined to comment. Officials at Deutsche Bank declined to comment.

DRS Technologies chose First Union over Mellon Bank to lead its $240 million deal late last month to fund an acquisition of the Sensors and Electronics Business of the Boeing Company. The deal replaces a Mellon Bank-led $160 million credit, which was paid down. "We're doing an acquisition and needed the financing," said Rich Schneider, cfo and treasurer. "As the company grows, we needed to move on from Mellon, since we were unsure of their commitment [to larger financing]. First Union is aggressive," said Schneider. DRS is a defense technologies company based in Parsippany, N.J.

The roadshows for Goldman Sachs' and Wells Fargo's deal for PETCO Animal Supplies, the Goldman and First Union deal for Relizon, and the Credit Suisse First Boston and J.P. Morgan deal for Collins & Aikman are reportedly set to continue in the coming weeks after being postponed. A banker involved in the Relizon and PETCO deals said, "We do want to press ahead with things." PETCO was in the middle of a roadshow and Relizon was about to launch one during the week of the terrorist attacks in New York and Washington. Pricing will remain the same on both deals, said the source. The banker could not provide a timeframe for the resumption.

J.P. Morgan has laid off two players in its collateralized debt obligation group as part of the firm's overall staff reduction measures. Douglas Lucas, head of CDO research, and Dwayne Brown, head of CDO syndications left the bank two weeks ago, though Lucas said he's working part time in the CDO area. He declined further comment. Brown could not be reached for comment. Lucas reported to Chris Flanagan, head of ABS research, who verified Lucas' departure and in terms of a replacement said, "the firm will be operating with existing staff." Brian McDonald, head of ABS syndications, did not return calls, but another banker on the syndications desk confirmed Brown's departure. Market sources speculated that downsizing in the group is a function of the Chase Manhattan Bank merger with J.P. Morgan.

United Defense's bank debt strengthened in the wake of the Sept. 11 attacks, hitting 1011/ 8 from a previous 1001/ 4 level. About $5 million was swapped in a single trade. Dealers said the reasons were obvious in light of possibly military action by the U.S. "Anyone with a military budget is going to thrive," said a dealer. The Arlington, Va.-based company manufacturers combat vehicles. Francis "Buzz" Raborn, cfo, was away on business with other officials in the company. A spokesman was not available.

Wyndham International's term loan "B" softened to 90-93--down about three points-- and the company's increasing rate loan sunk to the 94-95 range. The credit has dropped from levels prior to the World Trade Center attack. Wyndham, a hotel chain, had been trading up to the 991/ 4 range until early this month. A rumored buyout from Bass Hotels supported the levels, but dealers said the hotel industry will be among the hardest hit by the attacks on New York and Washington. Calls to Richard Smith, cfo, were not returned. Darcie Broussart, spokeswoman, also did not return calls.

Institutional investors in the leveraged loan market were quick to point the finger at lodging and Las Vegas-based casinos as worrisome parts of the portfolio as a significant shift in levels emerged following the World Trade Center and Pentagon attacks. Credits such as Wyndham International, Starwood Hotels, Extended Stay, Mandalay Resort Group, Venetian Casino Resort, and MGM Mirage were all eyed carefully last week as loan investors have exposure to the lodging sector and specifically see Las Vegas-based businesses as especially vulnerable to both airline and resort trends.

The Loan Syndications and Trading Association pushed the industry to allow settlement times to overrun in order to encourage liquidity and not penalize firms struck by the terror attack on the World Trade Center. The request came at a Sept. 14 meeting between board members of the LSTA and representatives from leading banks. Allison Taylor, executive director, said market players were eager to show solidarity and ensure liquidity is there, pricing is accurate and available and settlement procedures are adjusted to allow for companies that are displaced and may be unavailable to meet settlement deadlines. "People want business to return, though not necessarily as usual," Taylor noted.

The Loan Syndications And Trading Association is considering the establishment of a standard leveraged loan credit agreement to reduce costs for borrowers and shorten the time it takes to originate a loan. Additionally, the LSTA is considering creating a CDO committee and a pricing service for investment grade loans. The timetable on these issues may be adjusted in the wake of the Sept. 11 terrorist attacks, said Allison Taylor, executive director.

Lyondell Chemical Company "B" paper traded down to 97 1/8 from a high of 101 last week. An estimated total of $10 million traded. The sharp downgrade in levels was attributed to a cyclical chemical sector and the volatile market, which was heightened by the World Trade Center attacks. "The chemical sector is very cyclical and sensitive to oil prices," a dealer explained. "Bonds and stocks are down, the market is down, and liquidity is reasonably low, so that all translates into lower bids." The Houston-based company makes polymers and petrochemicals. Calls to Robert Blakely, cfo, were referred to investor relations director Patrick Quarles, who declined to comment.