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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.

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.

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.

Standard & Poor's has lowered the corporate credit rating on AMERCO, parent of U-Haul International, to D from SD (selective default) and the ratings agency says if the company is not able to access financing over the near term it could be forced to file for bankruptcy. The downgrade follows the company's failure to meet a $175 million debt maturity on May 15. "AMERCO's failure to meet the debt maturity due May 15 continues a pattern of defaults on certain debt payments that began in October 2002," said S&P credit analyst Betsy Snyder. An AMERCO spokeswoman did not return calls by press time.

The $400 million, four-year "B" loan for Williams Companies that will partially refinance a $900 million, 364-day loan led by Berkshire Hathaway was increased to $500 million last week. Pricing on the new loan, led by Lehman Brothers and Bank of America, was also flexed down 25 basis points to LIBOR plus 33/4%, according to a buysider. Williams will make a $1.17 billion payment that will retire the Berkshire Hathaway line, said a Williams' spokesman. He explained that the balance of the line will be refinanced with cash on hand. He declined to comment on the pricing change and the increase.

WorldCom's bank debt was said to have weakened a touch last week even as the company announced that it had reached a settlement with the Securities and Exchange Commission for a civil penalty for past accounting practices. The levels were quoted in the 271/2 281/2 range. No trades could be confirmed as traders still maintain that there are few sellers of WorldCom bank debt. The bank debt is quoted about 3/4 to a point lower than the bonds.

Wyndham International's bank debt was softer last week with the "B" loan quoted in the 79-80 context. A few sellers were said to have come to the market early in the week to test the bids, but paper did not trade, noted one market player. Dealers said the name is retreating from its recent run up into the low 80s. It is unlikely that the company will be rescued by the bond market like a lot of other stressed credits, traders said. In addition, negotiations for an amendment whereby the company would be able to push out the maturity on its increasing-rate loan until June 2006 continue. Calls to Rick Smith, Wyndham's cfo, were not returned by press time.

Zimmer Holdings has received a fully underwritten $1.75 billion credit line from Credit Suisse First Boston, J.P. Morgan and Bank of America to back the $3.2 billion bid for orthopedic device maker Centerpulse. Zimmer's bid is higher than an agreed offer from Britain's Smith & Nephew for $2.5 billion and now Zurich, Switzerland-based Centerpulse's shareholders can review both transactions, said a source. Zimmer's offer is comprised of $1.2 billion in cash and $2 billion in stock.

A few banks were rumored to be holding out on approving a two-year extension sought by Calpine Corp. for $1 billion of revolving credit capacity that was initially set to expire last Friday. The holdouts could not be determined. Traders said Calpine received a three-week to one-month extension for the revolvers until a more permanent solution can be worked out. The delay in getting the full two-year extension could be a reason why market rumors suggested banks were holding out as the company needs to receive 100% approval for the extension. "In a situation like this [lenders] feel empowered to ask for everything," noted one dealer. Rick Barraza, senior v.p. of investor relations for Calpine, said the company is still working with its lenders but he could not comment on the specifics of the bank deal.