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Mirant Corp. bank debt continued to come under pressure as the company's restructuring plan became the subject of creditor wrangling. A $5 million piece of the $1.125 billion revolver maturing in July was believed to have traded in the 62 range and the paper was quoted as low as 57-62 in the street last week. Two weeks ago, it traded in the high 60s to 70 range. One trader believed that debt holders have more to gain by approving Mirant's widespread restructuring plan, which ultimately extends the company's debt obligations in exchange for extra collateral.

A $30 million piece of Adelphia Communications Corp.'s Hilton Head "B" loan was auctioned off in the 82-821/2 range. The buyer and seller of the paper could not be determined. A few dealers believed that the price where the loan traded was a bit aggressive. The paper had been quoted previously in the 80-82 range and it was surprising that a piece of such size could get done on the offered side of that market, noted one dealer.

Cott Corp.'s positive momentum, exemplified by continuing improvements in EBITDA, operating margin, and return on assets, has led Moody's Investors Service to raise the company's rating outlook to positive from stable. Toronto-based Cott has also demonstrated stable free cash flow generation, with free cash flow-to-total debt over the last 12 months clocking in at approximately 24%. Moody's confirmed the Ba3 rating on Cott's $125 million secured bank credit facility.

Cross Country Healthcare completed a $200 million secured credit with a $125 million "B" loan that had its pricing flexed down during syndication. The tranche was two times oversubscribed, said Victor Kalafa, v.p. of corporate development at the healthcare staffing firm, explaining that the heavy buyside interest prompted the initial LIBOR plus 31/2% coupon to decrease to LIBOR plus 31/4%. The six-year "B" loan is accompanied by a $75 million, five-year revolver that priced at LIBOR plus 3%, Kalafa added.

Credit Suisse First Boston is leading the bank deal to back the acquisition of airplane part maker Transdigm Holding Company by private equity firm Warburg Pincus and senior management for $1.1 billion. Warburg is buying the company from Odyssey Investment Partners, another private equity firm that has owned Transdigm since 1998. The size, pricing and terms of the credit are still to be determined, said a banker familiar with the deal. But it is expected to size up around $400 million and close in the third quarter of this year. CSFB also managed the auction for Richmond Heights, Ohio-based Transdigm. The leveraged buyout agreement is also subject to the closing of a tender offer for Transdigm's 103/8% senior subordinated notes due 2008. A CSFB official declined to comment and a Transdigm official could not be reached by press time.

Omaha, Neb.-based infoUSA recently restructured its $110 million credit facility, increasing the loan to $145 million in conjunction with a plan to redeem a portion of its 91/2% senior subordinated notes. The company wanted to take the opportunity to buy back its bonds to save on interest costs, explained Stormy Dean, infoUSA's cfo. The company has approximately $92 million of 91/2% senior subordinated notes outstanding. While infoUSA has been buying back notes on the open market, it has yet to make a decision on the total amount that the company will call, noted Dean.

American Cellular Corp.'s bank debt was stronger last week as the market buzzed that a debt restructuring plan is taking shape. The details of the plan could not be determined, but one trader noted that there was a meeting last Thursday to discuss the deal. The company's bank debt has ticked up out of the high 80s and into the low 90s context over the last couple of weeks. The "A" loan was said to be trading in the 92 range and the "B" loan was bid in the 90 context, last week.

A $10 million block of Exide Technologies' bank debt traded up roughly two to three points this week in the 59-60 range. The company has filed a request with the bankruptcy court authorizing the payment of due diligence fees for exit financing. Exide is currently negotiating a $400-450 million exit financing with a number of firms, noted Matthew Kleiman, a partner at Kirkland & Ellis and an attorney for Exide. Kleiman suggested that the pursuit of exit financing could be an indication that the company was getting closer to its goal of emerging from bankruptcy in the fall. The battery maker filed for bankruptcy last April. Calls to Biagio Vignolo, executive v.p. and cfo, were not returned.

Bank of East Asia was not able to find an acceptable bid for an $11 million piece of The Goodyear Tire & Rubber Co.'s U.S. term loan, leading to a failed auction. The bank was rumored to be looking for 95-96 for the piece. The market for the paper has been ticking up from the low 90s. By Wednesday, traders quoted the loan in the 941/2 953/4 context. "I don't know who the heck will be willing to buy [Goodyear's bank debt]," said one buysider, noting that "there's a lot of wood to chop." Goodyear has a $750 million U.S. revolver, a $645 million U.S. term loan, as well as a $650 million European credit, which the company restructured this spring. The tire maker also added a new $1.3 billion asset-backed line.

Aaron Peck, formerly a director in Deerfield Capital Management's special opportunities group, has joined AEG Partners as senior director of AEG Investors, the investment group of the firm that focuses on acquiring underperforming commercial loans. Peck will work alongside Michael Goldsmith, a managing director and co-founder of Highland Park, Ill.-based AEG Partners. AEG Investors has been in existence for the last year. Peck was brought on to focus on the day-to-day operations.

Quintiles Transnational Corp.'s industry-wide risks and rising operating risks make the high leverage following the proposed management buyout of the company a central concern, said Michael Levesque, analyst for Moody's Investors Service. Moody's rated the $390 million credit, which backs Pharma Services Holdings' buyout of the pharmaceutical research and marketing firm for $1.7 billion, at B1. Quintiles contract research organization (CRO) business has also met slower and more volatile top line growth rates due to uneven research and development spending following patent expirations and other issues facing the large pharmaceutical companies that Quintiles serves, Moody's states. Levesque cited that Quintiles' CRO business' growth rates for accrued revenue declined from 8.6% in 2001 to 3.4% in 2002.

Ramius Capital Group's par loan group is looking to invest in more on-the-run, publicly-rated, liquid par loan term debt. Since its inception last year, the firm's par loan group has focused on illiquid, unrated, middle-market loans. But Neil Rothenberg, a managing director and portfolio manager of the par loan group, explained that Ramius is a relative-value loan buyer and at this point in time the risk/reward package offered in the liquid loan market is the best opportunity.