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Continuing the trend of loans being offered at an original discount in syndication, Credit Suisse First Boston's deal for The Ackerley Group was offered at a cut-price 97 to investors two weeks ago, according to a banker following the deal. After the market was offered the credit at a discount, the $120 million loan was oversubscribed. The discount will cut into the net proceeds of the deal rather than being covered by the bank through fees. Both the $20 million revolver and the $100 million, five-year term loan "B" were discounted in syndication. Pricing was LIBOR plus 33/ 4% and 4% over LIBOR, respectively, for the tranches. The revolver also carried a jumbo 11/ 2% commitment fee to facilitate syndication.

Adelphia Communications is shopping for banks to be co-arrrangers on the $2.5 billion credit that is likely to go into syndication in September. Lea banks First Union, Bank of Nova Scotia and administrative agent Bank of Montreal, are looking for more underwriters to fill out the deal. A number of market players are said to be eyeing the slots, but no names could be ascertained. Adelphia's loans have traditionally carried pricing around LIBOR plus 2 3/4 %, according to analysts who follow the company. The loan will be used to refinance existing debt. Officials at the lead banks were either unavailable for comment or could not be reached by press time. Karen Chrosniak, director of investor relations, did not return calls by press time.

American Greetings paid the price of refinancing in a difficult market, as pricing was flexed up and its term loan offered at a discount in syndication. David Poplar, investor relations manager, noted the senior secured credit facility consists of a $105 million, 364-day revolving facility, a $120 million, five-year revolver and a $125 million, five-year term loan. He declined to provide pricing details, but said that the term loan was offered at a discount in syndication to entice investors. Bankers noted that pricing was LIBOR plus 3% on the pro rata and LIBOR plus 41/ 2% on the term loan "B" after a 1% flex upwards. The term loan was also offered at an original issue discount of 97. National City Bank, Goldman Sachs and KeyBank led the deal.

American Tower's "B" paper began to tumble a little last week after hitting a high of 99 1/4 two weeks ago with a $10 million trade. Dealers said bid levels fell to 98 3/4, back to the bank debt's bid two weeks ago. Traders were not surprised by the fall back as tower credits are expected to lag behind a struggling wireless sector. "It's just following wireless. If wireless lags so will the infrastructure companies," said one trader. The company's debt was quoted at 99 in July as dealers stated that tower credits get lumped in with the rest of telecom (LMW, 7/1). In addition, to uncertainty regarding future business coming out of the wireless sector, Moody's Investors Service downgraded the debt and Standard & Poor's revised its outlook from stable to negative earlier in the month. Calls to Anne Alter, spokeswoman for American Tower, were not returned by press time.

Barclays Capital has hired Kevin Roach, a senior utilities analyst. He joins from Deutsche Banc Alex. Brown after working at that firm since May. The hiring of Roach, an Institutional Investor All-America Fixed-Income Research Team runner-up in 2000, follows the recent addition of Mark Pibl, a top-ranked energy analyst from Merrill Lynch, who was brought in to lead Barclays' U.S. investment grade research effort (BW, 7/16).

Queensland-based bank and insurance company Suncorp Metway will access the tier one and tier two subordinated bond markets in a bid to improve its adequacy ratios ahead of an acquisition. Suncorp will launch a A$200m-A$250m tier one issue structured as resettlement preference shares. The deal will be one of only a handful of its kind.

United Overseas Bank (UOB) has fulfilled market expectations by announcing plans to debut with a subordinated deal of an unprecedented maturity in the domestic market. The transaction will back its S$10bn ($5.73bn) cash and stock offer for Overseas Union Bank (OUB). JP Morgan and Merrill Lynch, together with UOB Asia itself, will joint lead manage a S$750m 15 year non-call 10 tier two sub debt issue, which has the potential to increase to S$1bn.

The jumbo IPO of China Telecommunications has been delayed as China's premier fixed line telco awaits a Beijing decision as to whether it will split the company into northern and southern China groups or by the type of telephone service the company offers. Bankers in Hong Kong said this week that the delay was almost inevitable, restructuring or not. Hong Kong's Hang Seng Index has lost more than 20% this year and telecoms stocks in Europe have fallen an average of more than 50% this year alone.

Japan The International Bank for Reconstruction and Development (World Bank) launched a ¥30bn 30 year callable binary power reverse dual Samurai bond this week, which was sole lead managed by Daiwa SMBC.

Australia Wheat marketer and financier AWB will become one of the top 200 Australian listed companies by market capitalisation when its shares begin trading on August 22. The company will have a market valuation at start of trading of A$860m.

AMP Henderson Airports Fund launched the prospectus on Wednesday for its planned IPO and more than A$500m fundraising. JP Morgan and JB Were are arranging the deal, which will be the first Australian listing of airport assets. AMP Henderson Airports Fund was founded and is controlled by Australian insurance and financial services company AMP. AMP wants to raise more than A$700m in two instalments.