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Charles Wyman, a high-yield telecom analyst and principal, has left Morgan Stanley Dean Witter for Pacific Investment Management Company in Newport Beach, Ca., according to BW sister publication Telecom Financing Week. A PIMCO official confirms the hire, but did not have his starting date or title. He did note that Wyman will be reporting to Craig Dawson, the head of the high-yield group. Wyman had been based in New York.

Moody's Investors Service upgraded the senior secured debt rating for Nextel Partners to B1 from B2 because of solid operating performance over two years. Nextel has consistently exceeded Moody's expectations for network deployment and subscriber additions. The company, based in Kirkland, Wash., has $1.3 billion in debt and credit facilities.

Under the gun because of a congressional deadline, the Federal Reserve by May 12 will introduce an interim rule that imposes new regulatory restraints on derivative transactions between banks and their non-bank affiliates, industry sources predicted last week. Normal procedure would be a proposed rule offered for a period of public comment. The concern in industry circles last week was whether the new interim rule would designate derivatives transactions with affiliates as "covered transactions." In that case, billions of dollars worth of derivative flows could be subject to transaction size limits and collateral requirements under Section 23A of the Federal Reserve Act.

Furr's Restaurant Group this month signed a $55 million credit facility that replaces bonds set to mature at the end of the year. The credit, a $20 million revolver and a $35 million term loan, offers a better route than bonds, said Paul Hargett, cfo. "We got a deal to redeem the bonds and for working capital and growth," Hargett said. "Given the market and rates on bonds, a credit facility fits our needs." The company was paying 12% on the bonds and will pay all-in pricing of approximately 8% on the bank facility.

An auction held last Thursday night resulted in a $44.2 million trade of Integrated Health Services bank debt. Dealers said there were two small trades earlier in the week at levels in the same range. Bank of Nova Scotia was rumored to be the seller of the piece. A bank spokesman did not return calls by press time. Mariner Post Acute Health Network also traded at 51-53 last week, although the size of the trade could not be ascertained. Integrated Health, based in Sparks, Md., owns or operates approximately 365 nursing homes and more than 15 specialty hospitals that offer wound management, cardiac care, Alzheimer's disease treatment, and other rehabilitation services. A company spokesman did not return calls by press time.

U.S. Industries is rounding up $700 million in bank commitments to retire existing debt and acquire a 75% equity interest in Rexair, Inc. from Strategic Industries. R. Bruce Clitheroe, treasurer of USI, added that the existing credit facility expires in December, and the new deal is contingent upon the successful sale of $550 million of 10-year subordinated notes. Parts of the proceeds of the notes will be used to pay down $100 million of the company's existing senior notes due '03. The bank group led by Deutsche Bank, was selected based on existing relationships with USI, Clitheroe said. Bank of America and Credit Suisse First Boston are also lead lenders.

J.P. Morgan Chase is looking for lenders to round out the syndicate on a $500 million credit line for AvalonBay Communities. The bank, along with administrative agent FleetBoston Financial, is holding a bank meeting in New York today. The three-year loan refinances a $600 million credit facility. The facility is priced at LIBOR plus 3/4 %, which matches pricing on the previous line. Up-front fees could not be determined, one banker said, adding that the banks may wait to gauge the response to the deal before setting the fees. Calls to J.P. Morgan Chase were referred to a spokeswoman, who did not return calls.

Tower credits are said to be weathering the economy well. Crown Castle's bank debt is trading at 100 3/4, while American Tower's "B" tranche traded up slightly over par. A piece of Graham Packaging's bank debt traded up two points to 95, while Gaylord Containers traded up to 95. For news on Owens Illinois and Winstar Communications see related stories on on the site.

Scotia Capital is preparing to become a credit derivatives market maker in European names in London. Matt Giffen, director, credit derivatives sales at Bank of Nova Scotia in London, said the bank's investment banking division will soon start making markets in investment grade single-name credit default swaps, total return swaps and first-to-default baskets.

The Chicago Board of Trade is rumored to be gearing up to negotiate out of its alliance with Eurex, the Swiss-German exchange, say CBOT insiders. Ahead of its meeting with Eurex in Germany on April 25, it is unclear whether the CBOT is trying to work its way out of part of the contract or divorce itself entirely from the deal. "Both Eurex and the CBOT are unhappy with the current contract, and I know the CBOT is looking for a way to get out," one CBOT insider told DW sister publication Wall Street Letter. A spokeswoman for the CBOT said, "We are happy with the volume on [alliance trading platform] a/c/e and we look forward to working with Eurex officials to come up with a future agenda that is in the best interest of both exchanges and their customers."

Adriano Cantreva, a marketer at Credit Suisse First Boston, has taken the position of credit derivatives marketer at Commerzbank Securities in New York. He will focus on covering hedge funds, according to a spokesman.

Icelandair has entered a call spread to hedge until June against the price of gas oil rising. Sveinbjorn Indridason, director of treasury in Reykjavik, said the airline bought an over-the-counter call option struck at USD220 and sold a call at USD240. Both options were for 6,000 tons of gas oil. The net premium on the trade was approximately USD6 per ton. Gas oil was trading at USD210 when it entered the trade.