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WCI Steel has violated a covenant under its $100 million credit facility, leading the company to pursue a financial restructuring. Accordingly, Moody's Investors Service has downgraded the ratings assigned to WCI Steel and its holding company, Renco Steel Holdings. WCI's bank debt rating was lowered from B2 to B3. The bank loan rating reflects the value of the receivables and inventory that secure the credit line, of which about $40 million is drawn.

West Corp. has closed on a $325 million credit facility from Wachovia Bank to support the $400 million acquisition of InterCall from ITC Holding Company, stated Paul Mendlik, executive v.p., cfo and treasurer for West Corp. The new financing includes a $125 million revolver and a $200 million "A" term loan. West Corp. decided to tap the bank loan market for the acquisition financing because of the attractive interest rates, noted Mendlik. Additionally, loan financing matches the company's needs most appropriately as West Corp has a very strong balance sheet and strong cash flows available to service the debt on a fairly short repayment schedule, Mendlik added.

As LMW went to press last week, Wyndham International was expected to receive all the votes it needed to pass an amendment extending the maturity of its increasing-rate loan. According to market players, the new draft will have the company's IRL mature a month before the June 2006 expiration date on its "B" loan. The facility was set to mature in June 2004. The market for the company's bank debt was stronger on the prospect that the amendment, and the extra incentives it provides, will be completed. The IRLs were quoted in the 83-841/2 context and the market for the "B" loan was 801/2 -811/2. A $10 million combination of the two facilities traded last Thursday.

Large pieces of Petroleum Geo-Services (PGS), a Norwegian oilfield service company, have been trading in the mid-to-high 50s as the company pursues a restructuring. A $15 million piece is believed to have changed hands in the 58 context in the last two weeks and an $80 million piece was said to have traded in the 55-58 range early last week. Whether the pieces traded into European or U.S. firms could not be determined. One dealer noted that the market for the bank debt has been improving. A spokeswoman for the company in the U.S. did not return calls.

Catholic Healthcare West, a not-for-profit healthcare provider, has renewed a $350 million credit line via lead bank, Bank of America. The credit includes a $175 million, 364-day revolver and a $175 million, two-year letter of credit facility. The letter of credit facility is posted as collateral for Catholic Healthcare's workers compensation, self-insurance program, explained Bill Baird, the company's assistant treasurer. The beneficiary of the collateral is California's self-insurance program. The only outstanding amount on the revolver, meanwhile, is $55 million. Catholic Healthcare drew down on the facility to bridge the time between the maturity of a private-placement issue and the completion of a new issue via B of A, expected in June or July.

Charter Communications' "B" loan traded up last week as the company prepared to come to market with an amendment that will allow its principal owner, Paul Allen, to provide a $300 million back-up credit. Pieces of the "B" loan traded into the 92-93 range from the 91 context with the news. The amendment will ask lenders to allow the back-up credit a second-lien security on some of the company assets. Moreover, the amendment will provide a 50 basis point increase to the interest rate provided on the "B" piece, pushing up the spread over LIBOR to 23/4%. The extra coupon was the main cause in the higher trading price of Charter's loan, noted one buysider. There were also rumors that some kind of debt-to-equity swap may be ahead for the company. The bank meeting to introduce the amendment was set to be held last Friday as LMW went to press. A Charter spokesman said no announcements had been made and the company does not comment on rumor or speculation.

Colfax Corp.'s competitive and fragmented market is a primary credit concern for Moody's Investors Service, said Charles Tan, v.p. and senior analyst. The fluid handling and power transmission product maker has considerable exposure to cyclical end-markets and is a relatively small entity in the highly competitive pump and power transmission industries, Moody's states. Moody's assigned a Ba3 rating to the proposed $315 million credit's $50 million revolver and $225 million "B" term loan, while the $40 million second lien "C" piece received a B1 rating. The facility backs Colfax's acquisition plans for German-based pump producer Netzsch Group for $113.4 million and will also refinance $145.1 million in existing debt.

With downgrades mounting in the CDO markets last year, investors were seeing an increase in features designed to provide early intervention in the case of portfolio deterioration and address the problem of abusive manager strategies. Danielle Nazarian, v.p. and senior credit officer at Moody's Investors Service, highlighted 11 structural protections that were either in their infancy or were becoming the standard on deals in a report that was widely acknowledged by managers and underwriters. Nazarian discusses with LMW progress made since the report was issued last summer and what more to expect in terms of structural enhancements.

Citigroup and UBS Warburg will be launching a $265 million credit for ALARIS Medical as part of the medication safety device manufacturer's recapitalization plans. Syndication of the facility is expected to be launched in the coming weeks, said William Bopp, senior v.p. and cfo, declining to cite a bank meeting date. The credit includes a five-year, $30 million revolver and a six-year, $235 million "B" loan. Bopp declined to comment on pricing.

At least a $35 million piece of Enron Corp.'s corporate loan changed hands in the 20-21 context early last week. The paper was a touch stronger later in the week, but was quoted wide in the 20-24 range. The uptick came with reports that Enron is pursuing litigation against its banks, claiming they provided improper advice. The bank debt had been weak following a bank meeting on May 21. One source who attended the meeting believed the slump was caused by technicals. This was the first bank meeting since last August and some lenders came out of the meeting and decided to sell, he explained. About $30 million of what is known to the market as the Hawaiian trust facility also traded in the 18-19 context.

A $5 million piece of Global Crossing's bank debt that was auctioned last week left secondary market players questioning the motives of the seller, Rabobank. Traders wondered why the bank decided to conduct an auction on such a small size of paper in a name that experiences decent flow with markets readily available. The paper ultimately sold in the 203/4 range, which is in the context of where the paper has been quoted over the last couple of weeks. Officials from Rabobank did not return calls by press time.

Centro Properties, an Australian shopping centre management company, has sold A$215m of new equity. At the same time it has announced plans to buy up to A$736m of retail property assets.