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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.

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.

Natural Resource Partners (NRP) has expanded its $100 million revolver for possible acquisition opportunities and also could possibly go after a term loan. The increased bank commitments brought NRP's line up to $175 million with no change in the pricing or terms of the original agreement. Dwight Dunlap, NRP cfo, said the company has its sights on new acquisitions, but declined further comment on the matter. As LMW went to press NRP announced the $53 million acquisition of two subsidiaries of Alpha Natural Resources.

Owens Corning was softer again last week as the company began litigation last Tuesday to move toward confirming its plan of reorganization. The bank debt was a few points weaker at 64-67, according to traders. No trades could be confirmed. "Owens Corning has been on again and off again and now it's off again," said one buysider, noting that the market for the company's bank debt has been volatile throughout the bankruptcy process.

Pieces of Dynegy's new loan for its Dynegy Holdings subsidiary were trading last week, with the new $1.1 billion revolver and the $200 million "A" term loan moving as a pro rata piece in the 94 1/2 96 context. No trades could be confirmed, however, for the company's new "B" piece. The market for the "B" tranche was quoted in the 93 95 range. The "B" loan only has a second priority lien on Dynegy Holdings' assets, compared to the pro rata portion, which has a first priority lien. While the pro rata replaces Dynegy Holdings' existing $900 million and $400 million unsecured revolvers, the "B" loan replaces a communications lease.

Sankaty Advisors, the fixed-income affiliate of Bain Capital, has raised the debt for its new $550 million collateralized loan obligation Race Point II CLO, with the deal containing new structural features and a particularly long ramp-up period. The deal can have a 270-day ramp-up period, which is one and one-half to two times more than the average ramp-up period for a high-yield CDO, according to Ashleigh Bischoff, an analyst at Fitch Ratings. The long ramp-up is beneficial as it will give Sankaty flexibility to purchase the 50% of assets needed to fill the vehicle over the year, she said, adding that given the economic conditions, liquidity in the loan market could be impacted in the coming months.

Life sciences company Serologicals closed out a $117.5 million credit with its first ever "B" loan to back the acquisition of Chemicon International. The transaction was completed last Monday after the tranche sizes shifted for the initially proposed $125 million deal. Bud Ingalls, Serologicals' v.p. of finance and cfo, said the company had recently improved its cash position, so it opted to increase the four-year revolver from $25 million to $35 million for more flexibility. The initially proposed five-year, $100 million "B" loan also decreased to $82.5 million, he added. Pricing terms closed at LIBOR plus 41/4% on the "B" piece and LIBOR plus 33/4% for the revolver, Ingalls noted. Proposed pricing did not change during syndication.

Shoppers Drug Mart Corp.'s improved operating and financial performance may boost the Toronto-based company's loan rating up from Ba1. Shoppers' progress in strategic initiatives, such as promoting pharmacy expertise, accelerating store growth, emphasis on a larger store size and refining of merchandise mix are all factors that prompted Moody's Investors Service to place the company's bank debt under review for possible upgrade, affecting Shoppers' $949 million in credit facilities. The possible upgrade will depend on the retail drug company's acquisitions, capital expenditure program, and the re-launching of its private label offerings. The review will also examine Shoppers' ability to contend with growing competition from other drug stores, as well as the company's systems and logistics initiatives. John Caplice, cfo at Shoppers, declined to comment.

Bram Smith, formerly head of loan syndication at Morgan Stanley, joined Bear Stearns last Monday as a senior managing director in leveraged finance. Smith is reporting to Keith Barnish, senior managing director and co-head of global leveraged finance, which includes teams in New York and London. Smith said he would also be focusing on loans both in the U.S. and Europe in his new position. He added that Bear Stearns will be selectively ramping up the department. "The first task is trying to integrate me," he added with a bit of humor.