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Oak Hill Special Opportunity Management, an affiliate of Oak Hill Advisors and Oak Hill Capital Management run by billionaire Robert Bass and his investment team, is out raising additional capital for the Oak Hill entities' first dedicated distressed debt fund. The fund will invest in both bonds and bank debt of distressed companies and will also look to take private equity stakes in distressed companies. It is primarily active and seeks to control and influence companies, an industry official familiar with the situation told Alternative Investment News an LMW sister publication. The Oak Hill Special Opportunities Fund had a first closing about eight months ago and raised approximately $300 million, the official said. Oak Hill is planning a second closing in the third quarter and is hoping to hit a total of $500 million, he said.

Hedge fund Silver Point Capital is stepping up to provide an $80 million second lien piece for bed and auto cushioning production company Foamex International, the latest twist on alternative financing options for needy borrowers. The loan was sought after the company's assets could not cover all of its debt in an asset-based credit, a banker explained. "It's a story credit," he noted. Silver Point is also leading a second lien piece for Fleet Securities' $65 million deal for Jacuzzi Brands that is set to close next week. The two second lien loans are Silver Point's first two stand alone deals, according to market players, and other hedge funds are looking to get in on the act.

Tom Brown, an exploration and crude oil and natural gas production company, has landed a new $425 million senior unsecured bank credit facility and a $155 million bridge loan to finance the $373 million acquisition of Matador Petroleum Corp. J.P. Morgan is leading both lines. The old $300 million revolver did not have the capacity to finance this transaction, noted Mark Burford, assistant treasurer of Tom Brown. A company "can't always choose the timing for an acquisition, but rather must act when an opportunity presents itself," he explained. "Tom Brown regularly evaluates opportunities for acquisitions, and when a company [like Matador] that fits your requirements becomes available, you have to take advantage of that opportunity," he added.

The $360 million "B" loan backing the acquisition of TransDigm Holding Company by members of senior management and an affiliate of private equity firm Warburg Pincus was nearing oversubscription late last week. Credit Suisse First Boston and Bank of America are leading the $440 million deal that was pitched to investors last Tuesday. The seven-year "B" loan is priced at LIBOR plus 33/4%, while the credit's six-year, $80 million revolver is priced at LIBOR plus 31/2% and includes a 50 basis point up-front fee. GE Capital and UBS Warburg have also signed onto the facility as co-documentation agents, a banker said. There is a $300 million notes deal tied to the transaction.

Bear Stearns has priced the notes for Denali Capital's third collateralized loan obligation, the $425 million Denali Capital CLO III, which will target middle-market loans, a rarely tapped area in the CLO universe. Though the vehicle will primarily tap the broadly syndicated loan market--deals over $250 million--Denali will aim for a meaningful level of middle-market loans as they offer better spreads, higher initial fees and better credit packages (LMW, 5/4). Greg Cooper, managing director and partner, declined to comment. Calls to a Bear Stearns banker were not returned by press time.

BNP Paribas and Credit Suisse First Boston will be launching syndication this Wednesday of the $290 million recapitalization credit for Oriental Trading. The credit for the direct marketer of novelties, toys, party supplies and other related products includes a $250 million, six-year "B" loan and a $40 million, six-year revolver. BNP leads the company's existing $180 million credit, which was put in place last August and includes a $150 million "B" term loan and a $30 million revolver. Pricing on the new credit was not disclosed as of last week, but the existing institutional piece is priced at LIBOR plus 23/4%, while the revolver carries a spread of 2% over LIBOR with a 50 basis point commitment fee.

Credit Suisse First Boston is set to price the notes for Credit Suisse Asset Management's $350 million CSAM Funding III collateralized debt obligation. The CDO is significantly ramped up and includes mostly par assets, a source explained. The source mentioned that if CSAM were to begin ramping up now, in light of the declining interest rate spreads in the current loan market, the deal would have been tougher to complete. But the firm does not foresee a problem in ramping up the remaining assets to complete the deal, he added. Price talk on the $255 million AAA tranche is LIBOR plus 55 basis points, according to another source, who added that the BBB tranche is likely to be in the LIBOR plus 300 basis points region. An official at CSAM declined to comment and a CSFB banker did not return calls.

Fitch Ratings has upgraded Del Monte Foods' senior secured bank debt ratings from BB- to BB on account of the company's improved credit metrics and stabilized cash flow following its acquisition of businesses from H.J. Heinz. The acquired businesses complement Del Monte's portfolio, Fitch states, adding that the manufacturer of branded canned fruit and vegetables has already paid down $150 million on its bank facilities since the closing of the transaction. Del Monte assumed $1.1 billion in debt and issued shares valued at $1.8 billion in order to finance the acquisition. The upgrade affects about $882 million in outstanding Del Monte debt.

GenTek's bank debt got a boost after the company filed its plan of reorganization and disclosure statement with the bankruptcy court last Monday. Traders quoted the "C" piece at 611/2 64 and the pro rata, which includes the "B" piece, was quoted in the 641/2 66 range. Across the board, the bank debt is about two points higher. One buysider suggested that the name was ticking up as the company gets closer to emergence and the market perceives a resolution to a few hang-ups in the case.

Global Crossing held its ground in the 213/4 221/2 range after a bankruptcy court judge approved the company's bid to extend its period of exclusivity and approve an amendment to the company's purchase agreement with Singapore Technologies Telemedia. Global Crossing and ST Telemedia now have a binding agreement until Oct. 14, which neither party can break without the threat of penalty. J.P. Morgan, the administrative agent to the lenders, objected to these motions along with XO Communications and IDT Corp. The two companies are looking for an opportunity to bid for the company. A Global Crossing spokeswoman declined to comment.

Noveon's ballpark $575 million refinancing term loan, led by Deutsche Bank and Credit Suisse First Boston, was fully subscribed and the company was working to decide on the loan's breakdown between U.S. dollars and Euros last week, said a banker. The original "B" loan was also split between the two currencies. The banker added that there was talk of taking out the company's existing "A" loan with the newly raised debt, but it could not be determined late last week if this is definite.

Edmund Kearns, v.p. and loan sales manager at Goldman Sachs, is set to leave the firm. After 16 years with Goldman, Kearns is said to be retiring for personal reasons. One buysider said he has "nothing but good things" to say about Kearns. Goldman has yet to find a replacement for Kearns, and it could not be determined if the firm would look to fill the spot internally or externally. Kearns declined to comment. A Goldman spokesman did not return calls.