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GE Capital and Lehman Brothers wrapped up a $270 million recapitalization credit for subsidiaries of Tempur World Holdings last week after introducing a pricing grid to the deal. A banker explained that the six-year, $135 million "B" loan is still priced at LIBOR plus 31/2%, as it was when syndication launched. But pricing can step down to LIBOR plus 31/4% if leverage goes below 3.5 times and pricing can go to LIBOR plus 3% if leverage goes below three times, he explained. The mattress and pillow manufacturer presently has debt-to-EBITDA multiples of about four times, he noted.

The Mills Corp. has completed a $500 million credit that helped finance the acquisition of Del Amo Fashion Center and Great Mall of the Bay Area. "The new facility increases financial flexibility and allows The Mills to seize opportunities to grow," said Noam Saxonhouse, v.p. of investor relations for the Arlington, Va.-based real estate investment trust. "If you have the chance to get increased financial flexibility at a low rate, there is no reason not to," he stated. In addition to its recent acquisitions, the company is certainly looking at other opportunities to expand, noted Saxonhouse. "The Mills has a very active development pipeline and an active acquisitions program," he added.

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Pohang Iron & Steel (Posco) this week achieved the highest conversion premium to date for an Asian company. The company sold ¥52bn of Euroyen bonds that give investors the right to exchange into SK Telecom shares at a 52% premium.

The Australian dollar bond pipeline began to pick up again this week, as Commonwealth Property Fund spearheaded a new set of deals with a A$150m October 2004 bond on Wednesday.

Australia

AUSTRALASIA

Citigroup has split the responsibilities of the chief executive officer for its Korean operations, hiring Thomas Oh from Asia Pacific Investment Group as joint CEO and head of Korean investment banking, and promoting Phillip Ham to the other position to add to his role as head of equities for Korea.

Allen & Overy has hired Ian Johnson as a corporate partner working in its Hong Kong distressed debt team. Johnson has 18 years' experience in corporate finance transactions, including distressed debt.

The Taiwanese government has hired Citigroup and UBS as joint bookrunners for the planned GDR offering of China Steel shares, which could begin at the end of August.

India

Deutsche Equities India (DEI), a new securities company wholly owned by Deutsche Bank, opened in Mumbai this week.