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After avoiding Chapter 11 bankruptcy earlier this summer, airline company Midwest Express Holdings is now seeking either new lenders or equity-based financing. The new financing will probably be from an asset-based or equity-based source, rather than a bank loan, according to Robert Bahlman, cfo. "We think it is hard to get in our industry right now," Bahlman said of why the company is not going the traditional bank loan route. "We've done some work [exploring traditional bank debt as an option] but we think that if we got alternate financing we'd rather do that." He declined comment on how much Midwest needs or which institutions it is speaking with.

Aladdin Capital Holdings, the Stamford, Conn., and Tokyo-based asset management firm with over $1.95 billion in assets, has thrown its hat into the ring to raise debt for a new collateralized loan obligation. A source confirmed that Bear Stearns would be leading the $300 million deal, called Landmark 3. "The first two [Landmark] deals are doing well," said the source, who added that closing is likely in November. The fund has been warehousing over the last few months and though spreads have contracted, credit quality has improved and the arbitrage is good, the source added. Gilles Marchand, senior portfolio manager at Aladdin, declined comment. A CDO banker at Bear Stearns also declined comment on any deals the firm is leading.

Bank One has been selected to lead a new $750 million revolving credit for Pulte Homes. Bank One replaces Bank of America, which had led the previous five-year, $570 million credit. The larger size of the line, which also consolidates other credit lines, reflects Pulte's greater need for working capital, a Bank One official said. Bank One put together a similar $1.27 billion deal for Lennar Corp. and Pulte preferred the letter of credit sub limit structure and covenants in that deal, the official added. B of A officials declined to comment. Pulte officials did not return calls.

The recently announced $4.2 billion leveraged buyout of Ondeo Nalco is set to stream $3.2 billion of financing into the debt markets and Bank of America, J.P. Morgan, UBS, Goldman Sachs and Citigroup are among the firms vying to lead the deal, according to market players. Hungry investors sitting on cash are looking forward to a new money bank deal that should come in north of $1 billion, bankers added.

Lehman Brothers allocated the $150 million "B" loan for B&G Foods last week after flexing pricing down by 25 basis points to LIBOR plus 31/4%, said a banker. The credit was three times oversubscribed, he said. The $200 million credit backs B&G's acquisition of Nestlé Prepared Food Co.'s Ortega brand acquisition for $116 million. The credit also includes a $50 million, five-year revolver that was expected to be drawn for $11 million to pay for the acquisition (LMW, 8/25). The revolver includes a $5 million sub limit for letters of credit. FleetBoston Financial, Bank of New York and CIT Group are all agents on the deal. A Lehman official declined to comment.

Banc of America Securities priced the notes backing BlackRock Financial Management's latest collateralized loan obligation last week. According to market sources, the $350 million Magnetite V was increased from $300 million. The $270 million triple-A notes priced at LIBOR plus 54 basis points, which continues the trend of tighter pricing on the liabilities of the top-rated tranches of CLOs. The $20 million single-A tranche priced at LIBOR plus 150 basis points, which is about 10 basis points tighter than marketing talk, according to a source. The $19 million triple-B tranche is priced at LIBOR plus 285 basis points. An $11 million double-B tranche is priced at LIBOR plus 800 basis points.

Last month's upgrade of six classes of notes from The Carlyle Group's Carlyle Group High Yield Partners CDO was a rare event, with investors more accustomed to a stream of downgrades. But a number of CDOs could be primed for upgrade as a number of deals exit their revolving periods--when only interest payments are made and before principal payments--and the credit markets continue to improve. "The pace of downgrades will slow down, though it will not disappear. But we will see a pickup of upgrades, primarily due to deals maturing," explained Marion Silverman, a senior director at Fitch Ratings.

Charter Communications' bank debt was up about a point and the bonds were up several points last week on the news that the company has sold various cable television systems for $765 million. Traders said the company's "B" loan was being quoted at about 941/2. Despite the positive news, several traders explained the bank debt struggles to go higher as there as so few natural buyers. "Everybody owns it, so maybe trading desks could buy it," one trader said. Charter has about $7.8 billion in bank debt under its Charter Operating, CC VI, Falcon Cable and CC VII Operating entities, according to company filings.

Too much debt and weak cash flows could cook up into loan defaults for quick-service and family restaurant companies, according to sector analysts. "The entire industry, whether fast food, family-style, or casual, has been hurt by the economy [and] unemployment," said Jerry Hirschberg, a Standard & Poor's analyst. "Fast food and family dining has been hurt more than anyone else," he added.

Wachovia Securities is scheduled to launch syndication today of a $250 million refinancing credit for Tredegar Corp. The deal includes a five-year, $175 million revolver and a $75 million "A" loan, both priced at LIBOR plus 11/4%. In April, the Richmond, Va.-based company extended its $100 million, 364-day credit for one more year, but the company said in a filing that this extension was only an interim step taken until longer term financing was put in place by Sept. 30. This credit, also led by Wachovia, is priced in the LIBOR plus 11/4-15/8% range. Additionally, the company has a term loan with $225 million outstanding as of last June. This loan is priced in the LIBOR plus 1/2- 1% range.

Credit Suisse First Boston and Lehman Brothers are getting the ball rolling on a $2.3 billion exit and recapitalization financing package for bankrupt NRG Energy. A banker said the deal would most likely emerge at the end of this year or in the first quarter of 2004, depending on when reorganization approvals materialize. The financing commitment from CSFB and Lehman will expire at the end of the year, but can be extended through March 2004 if the company pays an extension fee. The company hopes to emerge on or before Dec.15.

Mirant Corp.'s bank debt was quoted higher last week with some market participants attributing the rise to news that the bankrupt power company has filed a motion with the bankruptcy court to reject an out-of-market agreement to purchase power from electricity distribution company Pepco. Mirant is also seeking to renegotiate the terms of two out-of-market agreements to sell power to Pepco. Traders said the '03 was being quoted at 45-46, the '04 at 451/2-47 and the '05 at 68-70, with these prices up about four points from pre-Labor Day ranges. No trades could be determined.