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Global Crossing's bank debt inched up higher in the secondary market as the company's current deal to be acquired by Singapore Technologies Telemedia comes under pressure. The loan was quoted slightly higher in the 223/4- 231/2 range after a bank meeting last Tuesday. One trader suggested there may be room for a bidding war between ST Telemedia and XO Communications and Chairman Carl Icahn, which have also made an offer to acquire the company. The loan retreated into the 22-23 range after XO and Icahn revised their offer for the company and its bank debt.

Hayes Lemmerz International emerged from bankruptcy with a $550 million credit, $250 million of notes and two new lead banks that arranged both transactions. The global supplier of automotive and commercial wheels, brakes and other components selected Citigroup and Lehman Brothers to lead the debt deals after receiving several proposals from a large number of potential financers, said James Yost, v.p. of finance and cfo. "We felt both of them were the best of the bunch," he noted of the two leads and their proposed financing packages. CIBC World Markets led the company's pre-petition debt and did not submit a proposal to lead the new deal, Yost added.

New issuance in the high-yield market continues to push up names in the secondary loan market, with Calpine Corp. and Reliant Resources the latest to join the party. Calpine's "B" loan traded into the 995/8 range Thursday morning after the company announced it was pursuing a private placement of $1.8 billion of second-lien senior secured notes and term loans. Goldman Sachs is the lead arranger on the deal, according to market players. Proceeds from the transaction have been pegged to repay $950 million of Calpine's "B" piece and $450 million of the company's revolver. Given how the loan is trading, the market seems to think Calpine will be able to get the deal done, said one trader. Spokeswomen for Calpine and Goldman declined to comment.

The $170 million bank deal backing the $450 million acquisition of Packaged Ice by Trimaran Capital Partners and Bear Stearns Merchant Banking already had three tickets in for the $135 million "B" loan last week, well ahead of the bank meeting. A banker familiar with the deal said the actual syndication will probably not launch until mid-July. He did not specify the level of subscription. The bank meeting had been postponed because the company is waiting on regulatory reviews, another banker explained. CIBC World Markets, Credit Suisse First Boston and Bear Stearns are leading the facility. CIBC and CSFB officials declined to comment. A Bear Stearns banker did not return calls.

The notes for Stone Tower Capital's $325 million debut collateralized loan obligation, which contains a substantial number of Credit Suisse First Boston-led loans, have priced. A banker said Stone Tower is augmenting the deal with some additional buying of secondary loans, but amounts could not be determined. Stone Tower bought a pool of loans, both pro rata and institutional, from CSFB for the vehicle, which one buyer of CLO paper called, "very compelling, very different and very interesting" (LMW, 6/1).

Morgan Stanley has priced the notes for GoldenTree Asset Management's latest collateralized loan obligation, GoldenTree Loan Opportunities Fund II. The deal ended up being $375 million, which is $75 million more than market talk indicated, said a banker. The vehicle is rare in the market for enabling the manager to purchase up to 30% distressed and stressed loan assets (LMW, 6/8). Also, like the mammoth $700 million GoldenTree CLO, the new fund has a revolver within the CLO. This is up to 15% of the vehicle, said a banker. GoldenTree's lead loan portfolio manager, Fred Haddad, did not return calls.

NationsRent has emerged from Chapter 11 bankruptcy as a privately held company with an $80 million capital infusion from The Baupost Group and a new $150 million revolver from Wachovia Bank and GE Capital. Ft. Lauderdale, Fla.-based NationsRent filed for bankruptcy in December 2001. The Baupost Group and Phoenix Rental Partners--formed by Bryan Rich and Douglas Suliman with the explicit purpose of acquiring NationsRent's debt securities--started buying up the company's bank debt in June 2002, explained John Scherer, treasurer of NationsRent. The claims of the company's pre-petition senior secured lenders and general unsecured creditors have now been converted into new equity, he said.

Oaktree Capital and GFI Energy Ventures, co-general partners on the OCM/GFI Power Opportunities Fund, have tapped Barclays Bank to finance the buyout of InfraSource--a subsidiary of Chicago-based Exelon Corp. The fund is buying the electric construction and services, underground and telecom businesses of Infrasource for approximately $250 million in cash and $30 million in subordinated notes maturing in 2011. Barclays was chosen not only on the basis of its flexible terms, but also because of its knowledge and good reputation within the power and utility sector, said Lawrence Gilson, chairman of GFI Energy Ventures.

Owens Corning ran up about 15 points and more than $100 million of the loan changed hands last week as progress was made on a bill that is set to form a national trust fund to deal with asbestos liabilities, according to a dealer. The name started the week ticking out of the 60s into the 71-72 context. By week's end, however, traders noted that the bank debt shot up again following more negotiations of the bill and traded as high as 77-78. One dealer suggested that if the legislation gets passed, levels for the paper could rise even higher. Another believes that the market price for the loan already takes into account much of the benefits that will be passed along to lenders.

Workflow Management is talking to third parties looking to help it deal with a $50 million "B" loan due this December that the company does not think it can repay. The printing company has been contacted by entities such as private equity firms and various funds, responding to the maturing "B" loan, said Michael Schmickle, executive v.p., cfo and secretary of Workflow. "We are proactively trying to extinguish the $50 million term note," Schmickle said. "There's no one that we are excluding," he added, noting that Workflow is open to any potential savior that can help the company. "We would consider all alternatives," including new banks, he further added.

The value of public information is improving and the quality of private information is declining, but access to private information remains very valuable when a company's performance is waning, noted Payson Swaffield, v.p. of Eaton Vance and co-director of its bank loan funds. "As companies become more stressed they have very valuable information," he said. Swaffield noted that he used to receive monthly financials from companies, but now often receives only quarterlies.

The $1.15 billion credit backing Medco Health Solutions' spin off from parent Merck & Co. received a warm pro-rata reception last week. Lenders did not hesitate to grab a piece of the new money, oversubscribing to the "A" loan and revolver pieces, according to a banker familiar with the deal. J.P. Morgan, Goldman Sachs and Citigroup are leading the credit.