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Highland Capital Management, the world's second largest leveraged loan asset management firm, has hired Jack Yang, the ex-global head of leveraged finance products at Merrill Lynch, as a partner in charge of business development. Yang will head Dallas-based Highland's recently established New York office where he will focus on growing the business through potential acquisitions of asset management firms and new products. "The firm will use its capital to take advantage of both organic growth opportunities and acquisitions which leverage the firm's investment acumen and success," said Yang. He declined to specify potential acquisition targets.

Morgan Stanley and Credit Suisse First Boston hit the market last week with a $580 million recapitalization credit for medical device company Kinetic Concepts. An investor said the deal was not blowing out, but it should get completed. The credit includes a seven-year, $480 million "B" loan priced at LIBOR plus 23/4% and a six-year, $100 million revolver priced at LIBOR plus 21/2%. There is also a 50 basis point commitment fee on the revolver. Proceeds from the deal will be used in part to pay off the company's existing facility and to redeem Kinetic's 95/8% senior subordinated notes.

Dynegy's bank debt enjoyed a slight uptick after the company announced that bank debt holders would receive a fair share of the proceeds from an offer of approximately $1.2 billion of second priority senior secured notes and approximately $300 million of new convertible debentures. The company is hoping to pay back bank debt holders roughly $850 million, less financing fees, said a Dynegy spokesman, noting that the potential paydown is contingent upon the new financing announced last Tuesday. He said it has not been determined how the proceeds will be distributed across the different tranches. Dynegy's pro rata was quoted as high as the 971/ 2 - 981/2 range and its "B" loan was in the 971/2 973/4 context.

Fairchild Semiconductor International has obtained a $480 million credit line, taking the opportunity to cut interest costs by retiring $300 million of 103/8% senior subordinated notes, said Pete Groth, Fairchild Semiconductor's treasurer. The company also turned to the bank loan market because of the ability to pre-pay the credit at any time, he said. Depending on the performance of its stock, Fairchild Semiconductor may issue equity to reduce its debt, he said. The loan will be a "bridge to a time when we de-lever," said Groth.

FleetBoston Financial has launched syndication of a $175 million refinancing deal for Moran Transportation. The credit includes a six-year, $125 million term loan priced at LIBOR plus 31/4% and a five-year, $50 million revolver priced at LIBOR plus 21/2%. The credit will refinance the Greenwich, Conn.-based company's existing $78.6 million term loan priced at LIBOR plus 31/2%, $40 million "A" loan priced at LIBOR plus 3% and $60 million revolver also priced at LIBOR plus 3%. A Fleet official declined comment.

Guggenheim Investment Management has closed on a new $300 million leveraged loan fund that is approximately half ramped up. Notes for the vehicle, called Loan Funding Corp. 2003-1, were priced two weeks ago, said a source. He noted that the fund has a six-month ramp-up period and will target single and double-B names. The fund issued $25 million of class A notes and $12 million of class B notes, rated BBB and BB respectively, according to Fitch Ratings. Pricing on the notes could not be determined.

BNP Paribas and Citigroup are slated to lead a $2.2 billion financing package for Intelsat in conjunction with the satellite system operator's purchase of six satellites from now bankrupt Loral Space & Communications for up to $1.1 billion (see story, page 1).

Chris Kilpatrick, a bank loan trader and structured analyst at PIMCO, will soon be leaving the firm to join the fixed income management firm Western Asset Management Company (WAMCO). Kilpatrick will start working at WAMCO in the beginning of August as an analyst on the firm's structuring desk.

Mirvac, the Australian property developer, this week inaugurated its Multi-option Presales Securitisation Programme (MOPS), issuing four tranches of MTNs via ANZ Investment Bank and Merrill Lynch.

BNP Paribas Peregrine has signed up Jeff Kung from Fidelity Investment Management to become its new head of company research for Asia (ex Japan).

It was another busy week for new equity issues from Taiwan. Several new deals were priced, while others are still being roadshowed and are due to be priced imminently. The transaction flow shows no sign of abating before the August summer break in Europe and the US.

The NEC Electronics IPO was priced on Monday at the top end of the price range. The deal was marketed in an almost ideal timing for a new issue from Japan and the 34m placement was priced at ¥4,200 to raise ¥143bn.