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BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

Straight from the horse's mouth. . . Trainer Rick Violette has outperformed the market at Saratoga this year, winning four of nine juvenile races with two-year-old horses, among them Distressed Debt, Read the Footnotes and Bond Arbitrage. Violette is considering entering Bond Arbitrage in the $200,000 Summer Stakes at Woodbine on Sept. 14.

The potential for unexpected DVD market erosion puts pressure on the Ba3 senior secured debt rating for Cinram International, states Moody's Investors Service in assessing a new $1.2 billion credit for the DVD, CD, videotape and audio cassette manufacturer. The deal backs Toronto-based Cinram's plans to acquire AOL Time Warner's DVD and CD business for $1.05 billion. "It's possible that the DVD business could come under some specific market pressures," said Donald Carter, v.p. and senior credit officer at Moody's. He explained that the possibility of DVD piracy, which would resemble the rampant piracy in the CD industry right now, does exist. "There have obviously been some pressures on the CD side of this business," he added.

Syndication of Cinram International's $1.2 billion credit was launched last week with lenders oversubscribing the $300 million pro rata tranches, according to a banker. Bank One, Société Générale and GE Capital all came in at the agent level to join the Citigroup and Merrill Lynch-led deal, the banker said. The credit backs the DVD, CD, videotape and audio cassette manufacturer's $1.05 billion acquisition of the DVD and CD manufacturing businesses from AOL Time Warner (see Credit in Focus, page 9). A Merrill official declined to comment, while a Citi banker did not return calls.

Corinthian Colleges has completed an amended and increased $235 million credit facility, which includes a $50 million Canadian facility and a $185 million U.S. facility, both denominated in U.S. dollars, said Dennis Beal, executive v.p. and cfo. The credit was increased from $100 million and is in place to support the Santa Ana, Calif.-based company's growth plans, which include acquisitions and new branch campuses. The proceeds will also support capital expenditures to remodel, relocate and expand existing facilities, as well as fund other working capital needs. Corinthian is a for-profit post-secondary education company with colleges and training centers in the U.S. and Canada.

GE Capital launched syndication last Friday of an add-on $150 million "B" loan for Hanger Orthopedic Group. Jason Owen, treasurer of the orthotic and patient-care provider, explained that the loan will be used to fund the purchase of notes that are pursuant to a cash tender offer. The company announced last Tuesday that it was commencing a tender offer for any and all of its $150 million outstanding principal amount of 111/4% senior subordinated notes due 2009. Pricing for the add-on debt is set in the LIBOR plus 31/4-31/2% range, said Owen. The bank facility is currently just a $100 million revolver, which is priced at LIBOR plus 3%.

The secondary loan market was given a boost last week on the back of the massive influx into the high-yield bond market. AMG Data Services reported a record $3.3 billion inflow for U.S. junk bond mutual funds in the week ended Aug. 27. "Cable, wireless, rural are all higher," said one trader.