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  • Marcus Klug, managing director at UNIQA Alternative Investments, summed up the problem of downgrades: "Obviously if something goes from triple-A to triple-C, you are screwed."
  • Prestige Brands' $100 million second-lien "C" loan will likely offer only a 0-25% recovery of principal in the event of a default, according to Standard & Poor's. S&P has assigned a CCC+ rating to the credit and given it a recovery rating of five.
  • Mirant Corp.'s bank debt moved approximately two to three points lower last week with the overall market. Traders said the energy sector in particular was weaker.
  • Trip Mestanas, a more than 20-year veteran of the mortgage-backed securities markets, has left Deutsche Bank to join Merrill Lynch.
  • MyTravel Group's bank debt had slipped into the low 30s context by last week, but market players said the outlook for the travel industry--not the company's statements at its annual general meeting last week--was the culprit.
  • Nextel Communications' bank debt did not budge despite being upgraded to investment grade by Standard & Poor's.
  • The senior management of Octagon Credit Investors is said to be increasing its stake in the company to a majority ownership position through a recapitalization after a protracted auction process that could have led to an outright sale of the business to a rival.
  • The following is a list of prominent personnel moves from around the U.S. and European markets.
  • Westwood One found J.P. Morgan and Bank of America to be "particularly hungry" to lead the company's new $300 million credit facility, according to Andrew Zaref, Westwood's cfo.
  • Barclays Capital has hired Yukari Saegusa from Citigroup Global Markets as a director for its investment-grade utility and energy debt origination business, according to Jim Glascott, managing director and head of utility and energy debt capital markets in New York.
  • Tranches under the new $2.4 billion financing for Calpine Generating Co. weakened further in the secondary market after Standard & Poor's announced ratings for the new financing.