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BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

Pricing in the loan market is tightening and risk levels are getting stretched as the new issue market plods along and investors scurry to put their money to work. The bond market has been siphoning off bank money for the past few months, but market players say the problem is exacerbated by a steady flow of buyside money coming into the market and looking for a home. Broad demand from large funds such as the $2.02 billion Eaton Vance Limited Duration Income Fund and smaller funds is also crowding the market.

This chart, provided by Citibank/Salomon Smith Barney Inc., tracks bid-ask prices for par credit facilities that trade in the secondary market. It also tracks facility amounts, ratings, pricing and maturities.

Now that's relationship lending ..., Mayor Bloomberg's 2002 financial disclosure report reveals that 10 people and institutions owed him money last year with some debts in the neighborhood of $500,000 or more, according to The Daily News.

Loral Space & Communications bank debt traded up almost 20 points in a single day late last week following a bank meeting. The details of the meeting for the satellite communications company could not be determined, and speculation ran from asset sales to the construction of another satellite. But investors agreed that something is up, as the paper is now quoted in the 80-83 range, up from the low 60s at the start of last week. When the bank debt is marked up 20 points from where it was the day before, it is clearly a sign to the public markets that something is going on, one buysider noted. Calls to Richard Townsend, executive v.p. and cfo, were referred to an investor relations spokeswoman, who declined to comment on the information discussed at the bank meeting as well as the movement in the bank debt.

Wireless names in the secondary loan market have nearly come full circle from distressed lows, getting help from hungry investors and, in some cases, a recovery in the credit fundamentals. Nextel Communications ticked up right under par last week. Centennial Communications, Western Wireless Corp. and Rural Cellular Corp. have also been trading in the low 90s, rebounding from lows in the 60s, 50s and high 70s, respectively, according to LoanX. With Nextel and Centennial poised to tap the high-yield markets, some think that is a sign that other wireless names will as well, said one trader.

XO Communications and its Chairman Carl Icahn are proposing a tender offer for any and all of Global Crossing's bank debt for 21 cents on the dollar. Global Crossing has approximately $2.25 billion of senior secured bank debt, which has already been trading in the 21-22 context. One trader believed that lenders would not take Icahn up on his offer, calling it too low. Calls to Icahn were not returned by press time.

At least $1.75 billion in tickets were in late last week for the $850 million "B" tranche for the deal backing the $3 billion merger between Riverwood Holdings and Graphic Packaging International Corp. The tranche had about $1 billion in tickets after the June 5 meeting, in which some investors had bid for pieces of the loan even before syndication launched. A banker familiar with the deal said it was possible that the tranche size could be increased, but that was not definite. J.P. Morgan, Deutsche Bank, Goldman Sachs, Morgan Stanley, Credit Suisse First Boston and Citigroup lead the $1.6 billion acquisition and refinancing credit, which also includes a $400 million revolver and a $350 million "A" loan. Morgan Stanley, Deutsche Bank, CSFB, J.P. Morgan and Goldman officials declined to comment. Citi bankers did not return calls.

Lehman Brothers and Deutsche Bank last week hit the market with a $150 million credit for travel reservation data company Worldspan. The deal backs the acquisition of Worldspan by Travel Transaction Processing Corp., a company formed by Citigroup Venture Capital Equity Partners--a private equity fund managed by Citigroup Venture Capital--and Teachers' Merchant Bank, the private equity arm of Ontario Teachers' Pension Plan. The two entities are buying the Atlanta-based company from affiliates of Delta Air Lines, Northwest Airlines and American Airlines.

Tabletop aspartame sweetener company Merisant will be coming to market tomorrow with a $320 million recapitalization deal led by Credit Suisse First Boston. The credit includes a $240 million, six-and-a-half-year "B" loan, a $40 million, five-and-a-half-year revolver and a E40 million, five-and-a-half-year "A" tranche. A banker familiar with the deal could would not cite price talk for the deal as of late last week, but the company's existing credit put in place in 2000 is priced between LIBOR plus 23/4-31/4%. The existing credit includes a $199.5 million "B" loan, a $70 million add-on term loan, a $150 million "A" piece, a $65 million mezzanine tranche and a $50 million revolver, according to LoanX.