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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.

Lehman Brothers will be shopping Rent-A-Center's $600 million refinancing deal this week after it secured the role as joint-lead arranger with incumbent lead J.P. Morgan. A banker said Lehman is on the left running the deal, while J.P. Morgan is on the right. Lehman got the top spot because of its knowledge of the rent-to-own store chain on the equity side, said Robert Davis, v.p. of finance, cfo and treasurer. "They understand the company from that perspective," he said, adding that Lehman got a package deal to lead all of the company's debt and equity recapitalization plans, which include the credit facility, tender offers for shares and a notes offering. The banker added that Lehman's pitch for a Dutch Auction secured the package deal for the firm. The company intends to buy up to 2.2 million shares pursuant to a modified Dutch Auction and it is also in an agreement to buy additional shares from Apollo Investment Fund IV and Apollo Overseas Partners IV.

Mirant Corp. bank debt ticked up into the mid 80s last week following the company's earnings report as market players anticipate receiving additional security for their exposure in connection with planned debt restructuring efforts. A $10 million piece of the bank debt was believed to have traded the day before earnings came out. The levels where the trade went off could not be confirmed, but traders said the market for the name was in the 771/2 78 context at that time.

Norcross Safety Products has obtained a new credit facility to provide ample liquidity for acquisitions as the company eyes European safety companies and other domestic ones as possible targets, said David Myers, executive v.p. and cfo for Norcross Safety. The company is looking to close on a transaction during 2003. The facility will also be used to foster organic growth and to retire Norcross Safety's existing credit facility. The new credit comprises a $30 million revolver and a C$10 million revolver both with five-year terms and a six-year, $130 million term loan.

The $200 million refinancing credit for Central Garden & Pet Co. was nearly three times oversubscribed late last week, with lead arrangers CIBC World Markets, SunTrust Bank and Bank of America considering a reverse price flex for the $100 million "B" loan. The six-year institutional piece, is priced at LIBOR plus 3%, and would probably tighten to LIBOR plus 23/4%, said a banker familiar with the deal. There is also a five-year, $100 million revolver priced at LIBOR plus 21/4%. The facility also includes a $75 million accordion feature, subject to the lenders and specified covenants. A CIBC official declined to comment, while B of A and SunTrust bankers did not return calls.

Adelphia Communications Corp.'s Century Cable term loans moved into the 80s range up from the mid-to-high 70s last week. The piece of the Century Cable facility dubbed "Century New" by traders, due to its more recent issue date, traded at 80 and the "Century Old" bank debt was bid at 81 by midweek. The recent uptick marks the highest levels that the Century Cable term loans have seen since last summer. Market players said there were no developments concerning the company's bid to reorganize. Instead, the rally was driven by investors who were scrambling to buy paper.

FleetBoston Financial and CIBC World Markets filled out half of a $140 million "B" loan for Affinity Group after the bank meeting last Wednesday. A banker familiar with the refinancing credit said General Electric Capital Corp. came in at the agent level, but a GE spokesman could not confirm that. Pricing on the institutional loan is LIBOR plus 4% with an up-front fee of 25 basis points, the banker added. There is a five-year, $35 million revolver priced at LIBOR plus 31/2% also included in the BB-/Ba3-rated deal.