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The market for Venture Holding's bank debt is hovering in the 69-72 range as the company, its bank debt holders and Venture founder Larry Winget hammer out terms for the company's restructuring. No trades could be confirmed. James Butler, Venture Holdings' cfo and general counsel, said the parties have agreed to a preliminary term sheet, but it has not yet been disclosed to the public. While the parties are committed to working out a resolution, there are still some "significant hurdles" that need to be overcome, he added.

Western Refining Company's (WRC) new $125 million amortizing "B" loan is bolstered by a cash sweep, which channels 50% excess cash flow toward debt reduction, and a mandatory additional $10 million debt amortization per year requirement, according to Moody's Investors Service. The credit, which will fund the company's acquisition of Chevron USA's El Paso, Texas refinery and associated hydro-carbon inventory, has been assigned a B2 rating. Through a long-term operating agreement, Chevron has been operating WRC's refinery and its own neighboring refinery as one operation since 1993. WRC is looking to run the combined refineries at higher levels of intensity, producing 95,000 barrels per day rather than the 85,000 barrels per day produced under the Chevron operation, and believes that it could exceed historic cash flow patterns with the plan.

AMSTED Industries has completed its first "B" loan as a part of a new $545 million credit facility. The new loan comprises a $425 million, seven-year "B" piece and a $120 million, five-year revolver. It replaces the company's former $1 billion credit facility that was set to mature next year. AMSTED decided to refinance a year earlier to capitalize on the opportune conditions in the credit markets, said Matthew Hower, treasurer of AMSTED. "They had money and we needed it," Hower commented on using the institutional loan market for the first time.

Kinetic Concepts has completed a comprehensive recapitalization plan that includes a new $580 million credit facility, taking advantage of the refinancing opportunity to replace amortizing debt. "Over the next several years the prior loans were maturing," said Jim Farrell, a managing director at Fremont Partners--an equity sponsor to Kinetic--and a Kinetic director. He explained that these loans were starting to meet their peak amortization period and the company also had other high-yield debt that was coming due over the next couple of years. In addition to the credit facility, the recap includes the issuance of $205 million of series A 73/8% senior subordinated notes and more than $263 million series A convertible preferred stock.

Goldman Sachs has priced the notes for The Carlyle Group's $300 million Carlyle Loan Opportunity Fund I, a CLO that will contain par, stressed and distressed loan assets. A banker said the deal will not close until next month, but the notes have been placed. He added that there was the potential to upsize the CLO, but due to the strength of the underlying markets, there was concern over how strong the portfolio would be if more collateral had to be purchased. Michael Zupon, managing director and head of Carlyle's high-yield group, did not return calls.

Operational snags at some plants and an inability to generate earnings from revenue for automotive-interior producer Collins & Aikman Products Co. (C&A) has led to a downgrade by Moody's Investors Service. Difficulties absorbing launch costs and high raw materials prices as well as market share losses by key customers are central factors in C&A's downgrade to B1 from Ba3. The decision affects approximately $540 million in bank debt that includes a $175 million revolver, a $73.9 million term loan "A" and a $292.4 million "B" loan.

Choice One Communications' bank debt has been crawling up toward the 40 range since the company reported stronger financial results for the second quarter. A $10 million piece of the bank debt traded around the 39 level last week and about $30-40 million is believed to have changed hands in the 36-39 range two weeks ago. Prior to the recent activity, traders said the paper traded in the 32 context about a month ago.

An Asian bank is in the process of auctioning off the equity and management contract of Seaboard CLO 2000 in an effort to rid collateralized loan obligation exposure ahead of FIN 46. The managers of the CLO are now at Orix Capital Markets after Seaboard & Co. became a part of the financial services firm several years ago. But the Seaboard team still manages the $308 million deal led by Credit Suisse First Boston, according to a source. The investor is concerned that the debt will be consolidated on the balance sheet, the source added.

Federal-Mogul Corp.'s bank debt was a touch stronger last week after the company announced that it is considering a $350 million equity investment from Citigroup Venture Capital Equity Partners. The market was quoted about a 1-11/2 points stronger in the 751/2 761/2 range, according to market players. No trades could be confirmed.

J.P. Morgan is said to be considering the sale of Octagon Credit Investors, its leveraged loan asset management arm with over $1.75 billion of assets under management. Bankers said the reasons are twofold. FIN 46, a Financial Accounting Standards Board (FASB) measure that calls for the consolidation of special purpose vehicles on the balance sheet of the firm or bank taking on most of the vehicle's risk, is unnerving J.P. Morgan as it tries to interpret the effect it could have on its balance sheet.

The Asset Managers Forum is studying ways to automate swap confirms to recommend a best practice to its members. "The most pain and risk in swaps is the confirm process," said George Hall, v.p. at Goldman Sachs Asset Management and a co-chair of the AMF's swaps committee.

Vertical Crossings.com, the last major independent Internet-based securitized bond trading firm, is shutting its operations after its co-founder Patrick Downes and three senior colleagues resigned to join futures powerhouse Fimat USA to launch a structured products trading group. Harry Kaplan, co-founder at VCross, could not be reached for comment. Kaplan recently sent a letter to VCross stockholders, a copy of which was obtained by DW sister publication BondWeek, elaborating on the "severe financial difficulties" of VCross that prevented it from Òcontinuing as a going concern." The letter said Kaplan will oversee the wind-down as the sole director. A former VCross insider says the wind-down largely involves finding a buyer for the firm's Internet auction technology.