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Sun Capital Partners, fresh off 14 acquisitions this year, plans to raise another fund once it finishes investing the rest of its current $500 million fund, said Jason Neimark, principal. There is still about $430 million left on the Sun Capital Partners III fund and it is still too soon to anticipate the size of the next one, he noted. The fund, which was raised last January, originally had more than $2 billion in commitments, he noted. The commitments are not being rolled over into a future fund. Participating in Sun Capital's funds are financial institutions, fund-of-funds investors, university endowments, pension funds, and high net worth individuals, families and trusts.

Fitch Ratings' outlook on Tesoro Petroleum Corp.'s BB- rated senior secured debt has been changed to stable from negative, reflecting the company's improving capital structure. The company has repaid its $125 million secured term loan. "We're very much focused on reducing debt," said Scott Spendlove, Tesoro's v.p. finance and treasurer. He noted that the company is currently operating with a debt-to-capital ratio around 63% and would like to reduce that ratio to the mid 50% range by the end of next year.

UBS wrapped up a $175 million asset-based credit for Broder Bros. last week, said Howard Morof, cfo. The credit backs the sportswear distributor's acquisition of Alpha Shirt Company for $232 million from Linsalata Capital Partners, a Cleveland-based private equity firm (LMW, 7/28). Earlier this month, Broder Bros., which is majority owned by Boston-based private equity firm Bain Capital, also sold $175 million of seven-year, 111/4% notes to further finance the acquisition. Bain put about $76 million into the transaction, said Yoo Jin Kim, a principal at Bain.

Loral Space & Communications' bank debt held steady last week, although the company reported a malfunction on its Telstar 4 satellite. Market players said Loral's bank debt maintained its 96 -98 levels, despite announcements that the satellite is no longer operational. Telstar 4 was one of the six satellites slated to be sold to Intelsat for up to $1.1 billion in cash as a part of Loral's restructuring. Proceeds from this sale are earmarked to repay lenders with $959 million of outstanding secured bank debt claims.

Mirant Corp.'s bank debt climbed slightly last week after the company was able to achieve what creditors believe is a small victory in court. Mirant's '03 bank debt was trading in the 53-55 range and its '05 loan was changing hands in the 75-78 context, last week. The company was able to obtain a permanent restraining order enjoining the Federal Energy Regulation Commission (FERC) and Potomac Electric Power Company (Pepco) from initiating any conflicting proceedings against Mirant's motion to reject an out-of-market agreement to purchase power from Pepco, explained a Mirant spokesman.

Levels for Motor Coach Industries' bank debt have been sliding, with traders quoting the paper in the low-to-mid 70s. No trades could be confirmed, but multiple market players were watching the name last week. "The company may miss their covenants and will probably have to go back to the bank group later this year," noted one buysider. Allan Swanson, Motor Coach's cfo, declined to comment through a spokeswoman. Motor Coach's "B" loan was quoted in the 791/2-823/4 context at the beginning of this month, according to LoanX.

Citigroup and Bank of America launched syndication of the credit backing the $4.2 billion leveraged buyout of Ondeo Nalco to pro rata players last week, according to a banker familiar with the deal. The exact structure of the credit could not be confirmed, as one banker explained the breakdown is still not finalized. But market players said the facility will most likely have a "B" loan in the neighborhood of $1.1 billion and $300 million in pro rata. Price talk was estimated in the LIBOR plus 23/4-3% range. Retail syndication will be launched within the next few weeks, the banker noted.

AMN Healthcare, a temporary healthcare staffing provider and the largest provider of travel nurses in the U.S., has a competitive position and an ability to attract nurses, according to Moody's Investors Service. There is also a strong demand for AMN's travel nurses, Moody's adds in its report rating the company's proposed $120 million term loan at Ba2. Proceeds from the term loan will help fund AMN's $180 million self-tender offer to purchase common stock and stock options. These purchases will also be funded from cash on hand and from $25 million of the company's $75 million revolver. Bank of America leads the existing revolver.

ATP Oil & Gas Corp. more than doubled its borrowing capacity with a new $110 million asset-based credit facility, said Albert Reese, Jr., senior v.p. and cfo. He explained that the offshore oil and gas development and production company previously had a $50 million, asset-based revolver through Union Bank of California that was set to expire in April 2004. But ATP selected Wells Fargo Foothill and Ableco Finance to provide the new deal. "They had a good borrowing base for the assets," he said of the decision to select the lenders. Reese added that the Houston-based company reviewed several proposals from lenders that had approached ATP before making the final choice.

The bank debt for bankrupt Outsourcing Solutions charged up nearly 10 points last week as the confirmation hearing on the company's exit plan approaches. Market players said the name traded as high as the 56-57 level last week after being quoted by LoanX in the mid 40s two weeks ago. One trader noted that it was hard to quantify the uptick because it could not be determined if trades were recently completed in the 40s range.

David Glancy, a high-profile junk bond manager for Fidelity Investments, is prepping a new hedge fund venture after leaving the giant money manager this past summer. Glancy's new firm, Andover Capital Advisors, will manage the Andover Capital fund. The fund will invest in the stocks, bonds and bank debt of companies with below-investment grade rated debt.

U.S.I. Holdings Corp. has wrapped up a $125 million term loan and $30 million revolver that will give the company more room under its financial covenants. "It basically resets all of our covenants with levels that we feel we will be comfortable with," said Bob Schneider, executive v.p. and cfo. The company's former facility was set up in 1999 as a bridge loan to permanent financing, such as a high-yield deal, that never came to fruition, he added.