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SIGN OF THE TIMES

After months in which the conundrum of low medium-term yields persisted in the face of a tightening monetary policy, the Fed's message appears to be getting through at last. The 10 year Treasury backed up to a high yield of 4.50% yesterday, before rallying back to 4.47%. These yields are at six month highs and swap spreads were dragged wider as a consequence.

A tug-of-war between conflicting forces left the Barclays Capital Convertible Cost Index just where it began this week, at 2.57%. Fears about rising US interest rates are dragging on global equity markets, pushing all the major indices down over the past week.

Royal Bank of Scotland has completed syndication of the £181.2m of debt backing the acquisition of Tunstall, a provider of emergency alarm units for sheltered residences. Bridgepoint is buying the company from Hg Capital in a secondary buy-out. The private equity sponsor is buying the company for £225m from Hg Capital. At the same time, Tunstall is buying Attendo Response and Attendo Systems, which is the Scandinavian market leader in telecare products.

Alternatifbank will shortly mandate around 15 banks to arrange a $100m 364 day loan.

Barclays Capital and Royal Bank of Scotland have won the mandate to arrange the facility supporting Carlyle Group's buy-out of Britax Childcare — maker of car seats for babies and young children. The private equity firm bought the company for £230m from Britax International in September.

Barclays Capital has won sole mandate to arrange the recap of Capital Safety Group which provides height safety and fall protection equipment. The company came into being in 1998 through a management buy-out backed by Electra Partners.

ABN Amro, Bank of Scotland and Barclays have launched the debt backing the £120m recap of HSS Hire Service Group. The original £145m deal was done for 3i's acquisition of the company. The new financing is split into a £45m seven year term loan 'A' paying 225bp, a £25m eight year term loan 'B' that pays 275bp, a £25m nine year term loan 'C' with a margin of 325bp, a $15m seven year acquisition facility with a margin of 250bp and a £10m seven year revolving credit paying 225bp. Senior debt is 2.9 times Ebitda.