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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.

The holiday of Cinco De Mayo, The Fifth Of May, commemorates the victory of the Mexicans over the French army at The Battle Of Puebla in 1862. It is primarily a regional holiday celebrated in the Mexican state capital city of Puebla and throughout the state of Puebla, but is also UBS Warburg's chosen date for a get-together with their clients. The event has become so popular, UBS decided to hold this year's event at the outdoor Café St. Bart's, switching from the usual Grand Central Station location.

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.

Rent-A-Center's new $650 million credit is not rated one notch above its senior implied rating of Ba2 because of its modest tangible asset coverage. Although the deal is adequately secured, the coverage is low compared to the rent-to-own store chain's total and secured debt, explained Marie Menendez, v.p. and senior credit officer at Moody's Investors Service. Moody's notes the company's secured debt levels continue to increase as a proportion of total debt, which eliminates the benefit from growth in tangible assets or enterprise value. Out of the company's $1.7 billion in assets, about $800 million is in goodwill, explained Robert Davis, Rent-A-Center's v.p. of finance, cfo and treasurer. He noted that the company viewed the ratings as positive. The deal is rated Ba2 and includes a five-year, $120 million revolver, a six-year, $450 million term loan and an $80 million synthetic term loan.

Eric Taub, a former managing director in charge of research for syndicated finance at SunTrust Bank, moved over to Wachovia Securities, where he began work last Monday. Taub is now a senior v.p. and risk portfolio management leader working in Wachovia's Atlanta satellite office. He is reporting to Russell Playford, the senior v.p. in charge of portfolio management at Wachovia. An official familiar with the situation said Taub will be working on market-oriented solutions in portfolio management.

Improved liquidity in the European loan market and a pool of quality product is attracting U.S. investors. The draw to a market that has been "developing" for years is alternative supply, high yields and strong recovery values. "We're looking at it," said one buysider. There are good companies in Europe being brought to the loan market, he noted. "We want those companies in our portfolio."

Wachovia Securities is holding off on its efforts to syndicate a $350 million refinancing for Post Properties, given the chaos surrounding the real estate investment trust's management, according to LMW sister publication, Real Estate Finance & Investment. The bank, acting as lead arranger and administrative agent, had been fresh from a bank meeting when the proxy-fight at the Atlanta-based REIT began, according to David Blackman, director and manager of real estate syndications at the bank. "The proxy fight came up unexpectedly and since it is not a pending maturity, we would get a much better execution if we waited," he said.

Walter Industries has completed a new $475 million credit facility that is tailored to allow the company to go forward with its plans to pare down and focus on its core businesses--home building, financing and U.S. pipe manufacturing. "We are trying to simplify the company. The facility has pre-approved divestitures," said Miles Dearden, Walter Industries' treasurer. "Lenders were able to get comfortable with our strategy." Depending on leverage levels and the business that the company sells, 50-100% of the proceeds from the divestitures will be applied to reducing the new bank debt.

Owens-Illinois' $2.1 billion refinancing deal has already gained commitments, with bankers expecting that the $600-700 million "B" loan could be oversubscribed before the meeting this Wednesday. One banker said several lenders were in on the facility even before any structural details were announced. Another banker said the credit's structure was still being ironed out late last week. He declined to specify pre-launch commitment levels on the deal. The structure is set for a $1.3-1.4 billion pro rata portion that includes a revolver and an "A" piece both priced at LIBOR plus 31/4%. Another banker said the "B" loan would be in the $700 million range with a spread of LIBOR plus 31/2%. This would be at the low-end of the initial LIBOR plus 31/2-33/4% price talk for the tranche. He added that the institutional piece carries a 1/4% up-front fee.

Credit Suisse First Boston has priced the notes for Katonah CLO V, a $250 million collateralized loan obligation managed by Kohlberg & Co. subsidiary Katonah Capital Management. Katonah was the first shop to issue notes on a CLO this year when it raised the debt for Katonah CLO IV just a few months ago (LMW, 2/9). One analyst said the $265 million of Triple-A notes for Katonah CLO IV were priced at LIBOR plus 55 basis points, but the notes carried a discount, so the true spread was in the realm of LIBOR plus 60-65. Officials at Katonah could not be reached for comment by press time and Jerry deVito, co-head of CSFB's leveraged finance CDO group, did not return calls.