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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.

Citigroup and Harris Nesbitt--the U.S.-based investment and corporate banking practice of BMO Financial Group--wrapped up a $250 million credit for Seminis last Thursday after cutting pricing on the six-year, $190 million "B" loan. A banker familiar with the deal said the term loan was oversubscribed with more than $500 million in tickets received for the tranche, causing the lead arrangers to reduce pricing from the originally proposed LIBOR plus 31/2% level by 25 basis points. The institutional piece was offered at par. The credit also includes a five-year, $60 million revolver priced at LIBOR plus 3%, the banker added.

Charter Communications' operating company "B" loan traded as high as the 951/4 range before settling down to the 9495 context following the company's announcement that it is pursuing a debt exchange. Charter and its indirect subsidiary CCH II have entered into agreements to purchase an aggregate of $609 million in convertible senior notes and $1.3 billion of senior notes and senior discount notes in private transactions with a number of institutional investors. CCH II will issue $1.6 billion of 101/4% notes due 2010 to support the exchange.

Contrarian Capital Management is looking to build a direct lending business that invests in first and second-lien debt, marking the latest entry on a growing list of hedge funds jumping into the lending market. Hedge funds are positioning themselves to capitalize on the continued pullback of commercial banks from lending and the growing need for Chapter 11 exit and rescue financings. Soros Fund Management recently announced an initiative to target this space, while market participants cited Citadel Investment Group and SilverPoint Capital as becoming increasingly active.

Federal-Mogul Corp.'s bank debt ticked up in trading last week, with at least one $20 million piece said to have changed hands in the 781/279 range. The name is believed to have traded as high as the 791/2 level up from the 76-77 context, where it was moving two weeks ago. One trader said the debt instruments that lenders are expected to receive under the plan of reorganization will trade in the 80s. Another said the company is coming under pressure to emerge from bankruptcy.

Lehman Brothers has increased the size of Eaton Vance's, Eaton Vance CDO VI collateralized loan obligation, from approximately $300-350 million to $510 million after the deal was well received by CDO investors. Lehman priced the notes backing the leveraged loan-backed transaction two weeks ago, with the triple-A portion featuring what one analyst described as an innovative structure.

Level 3 Communications' bank debt shot up from the low 90s right up under par following the company's announcement that it is pursuing a $500 million senior note issue and will use proceeds from the offering and cash on hand to repay its credit facility. Traders said the bank debt was changing hands in the 99100 context. The company has approximately $1.125 billion in outstanding bank debt. J.P. Morgan is the administrative agent on the loan. Level 3's bank debt was quoted in the high 60s less than a year ago, according to LoanX. The company expects to complete the offering during the first week of October. Sunit Patel, Level 3's group v.p. and cfo, was traveling and could not be reached. A Level 3 spokesman did not return calls.