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Leap Wireless International's vendor-financing paper shot up roughly 10 points last week from the 43 level into the 52-54 range. Dealers said the name traded as high as 55 before softening into the low 50s. A few market players noted that a recent public transaction demonstrated positive valuations and the market was drawing parallels to Leap Wireless. One trader suggested that this transaction was for MetroPCS, a Dallas-based wireless services provider that is seeking $150 million in new senior notes. MetroPCS has a comparable business plan to Leap Wireless, so some investors believe that if MetroPCS can obtain new financing, Leap Wireless can too, he explained. There were also rumblings that a private equity investor could be on the sidelines, said one trader.

Adelphia Communications' bank debt traded up last week in front of a Sept. 19 deadline for the bank debt holders to issue a response or file a motion to dismiss the complaint filed against them by Adelphia's Official Committee of Unsecured Creditors. The complaint alleges that bank debt holders knew of, or recklessly disregarded, the fraud committed by the Rigas family, particularly in regard to the co-borrowing arrangements the family had with various corporate credit facilities. When LMW went to press, the banks and the Official Committee of Unsecured Creditors were negotiating a two-week extension to that deadline, according to an attorney familiar with the case. The banks are expected to file a motion to dismiss the complaint, he added.

The bank debt for Owens Corning and Federal-Mogul Corp. inched about two to three points higher last week on the rumor that there is a proposal in the works that will resolve the disputed aspects of the Senate's asbestos liability legislation. Dealers said Owens Corning bank debt was trading in the 62-64 range and Federal-Mogul was actively changing hands in the 76-77 context last week. "It's rampant speculation at this point," said one trader, regarding buzz around the proposal. Calls to Owens Corning and Federal-Mogul spokesmen were not returned by press time.

Barclays Bank has sold the management of its Venture CDO 2002 and Venture II CDO 2002 loan funds to MJX Asset Management, as first reported Wednesday on LMW's Web site. The newly formed company is owned by Robert Sillerman and members of the existing Venture management team, including Hans Christensen and Martin Davey. Michael Regan is also moving with Christensen and Davey. The team was together at Citigroup's alternative investment strategies unit, before joining Barclays in 2001 (LMW, 8/01).

Standard & Poor's pushed Park Place Entertainment Corp. off the investment-grade cliff, downgrading the company's corporate credit rating from BBB- to BB+. S&P cites that the casino operator's plans for a $376 million expansion project at its Caesars Las Vegas property come at a time when credit measures have not improved to levels more consistent with the previous ratings. Park Place's EBITDA is lower than expected for the first six months of 2003, S&P explains, noting that multiples were expected to be much closer to four times by the end of this year, compared to 4.5 times at the end of last year. Park Place's debt as of last June was approximately $4.7 billion.

Hong Kong

Caterpillar Financial Australia launched its first medium term note into the Australian market this week with a A$120m three year issue that received a warm investor reception.

Four Japanese issuers sold Euroyen convertible bonds this week. The burst of action follows a similar flurry two weeks ago, although this time there was no controversially priced issue like that from Anritsu Corp.

Goldman Sachs plans to set up a joint venture investment bank in China, in a similar manner to China Construction Bank and Morgan Stanley's China International Capital Corp.

Orient Corp (Orico), the Japanese consumer finance company, came to the euro and yen markets this week to launch a ¥35bn equivalent securitisation of seller's interests from two of its earlier card loan ABS.

Interstar Securities, Australia's oldest mortgage backed security issuer which was recently purchased by Challenger Financial Service Group, this week priced a A$500m domestic MBS, lead managed by Macquarie Bank.

SG launched a Eu500m securitisation for Heritage Building Society last Friday, taking advantage of European demand for Australian mortgage backed securities.