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Graham Packaging has completed a $820 million line of credit, eight months after a planned bank deal was nixed. Deutsche Bank and Salomon Smith Barney lead the facility that reworks the company's existing senior bank debt at a higher rate of interest. The spread over LIBOR increased by 100 basis points on the term loan and by 225 basis points on the revolver. The upward price flex was market driven, said Mark Leiden, director of investor relations for Graham, explaining that while the bank market was still strong, spreads have gone up since the company's previous deal. "The original agreement started in February of '98, during a pretty attractive time," he said.

At least three high-yield portfolio managers say they are less than enthused about the forward calendar. They note that most deals are small and from off-the-run industries, which make them illiquid and more trouble than they are worth to analyze. As of March 7, the calendar included just two deals larger than $250 million, and no deal larger than $400 million, according to data gathered by Merrill Lynch.

Last week started strong in high yield, but was softer through Thursday. B/E Aerospace's 8.875% of '11 dropped three points to 62. WorldCom holding company paper was up by 0.75 to 23. The energy sector showed strength. Here is selected action.

The Royal Bank of Scotland has been mandated to lead a credit backing equity sponsor American Securities Capital Partners and company management in the buyout of Oreck Corporation. A banker familiar with the deal said the full details of the credit have not been determined. But he noted the deal is estimated to comprise approximately $140 million of funded financing with a revolver. RBS is out to possible co-leads on the deal, he added, noting that a retail launch will soon follow. The vacuum cleaner company deal is expected to be leveraged just over three times debt-to-EBITDA, all senior. New Orleans-based Oreck sells cleaning equipment and machines throughout North America, South America, Europe and Asia. A RBS official declined to comment. David Horring, managing director at American Securities, did not return calls. An Oreck official could not be reached by press time.

Morgan Keegan has hired collateralized mortgage obligation trading veteran Andy O'Fee away from Merrill Lynch. O'Fee, who started last Monday, will be part of Morgan Keegan's seven-trader mortgage-backed securities trading unit, according to MBS chief Chris Perkins, who declined further comment on the matter. He will be responsible for trading secondary agency issues, says an individual with knowledge of the situation. He will be a senior v.p. based in the firm's Memphis headquarters.

There is still room for total return gains in the high-yield refining sector, according to at least three sell-side analysts. Refiners make the bulk of their profits from gasoline sales during the summer driving season, and inventories look to be extremely low this year, says Gary Stromberg, an analyst at Bear Stearns. He also sees a drop in crude oil prices in the second half of the year, driving down costs for the refining industry.

UBS Warburg is preparing to launch syndication of a $450 million credit backing TransMontaigne's acquisition of the Florida petroleum operations from El Paso Corp. The new facility consists of a three-year, $250 million revolver and a three-year, $200 million term loan, which increases the company's existing credit line by $150 million. FleetBoston Financial led the previous facility. A banker familiar with the new deal said it is still too early to determine pricing, but that the deal would be syndicated in early April. A UBS official declined to comment.

UBS Warburg's $100 million "B" piece for Serologicals' acquisition of Chemicon International hit the market last Thursday with a LIBOR plus 41/4% coupon. The five-year, fully underwritten deal also includes a $25 million revolver priced at LIBOR plus 33/4%, according to a banker familiar with the facility. This is the life sciences company's first "B" loan. Bud Ingalls, Serologicals' cfo, said in a previous interview that Serologicals was advised that an institutional piece would receive the best reception in the present market (LMW, 2/24). UBS was also the financial advisor for the $95 million acquisition. A UBS official declined to comment. Ingalls was travelling last week and could not be reached.

UBS Warburg has recruited Mike Rosenberg and Jeff Herlyn from J.P. Morgan Securities to be the co-heads of its global credit collateralized debt obligation business. The positions are newly created. Both start today and report to the co-heads of global credit derivatives Mike Connor and Sal Naro. Naro confirmed the move.

Kevin Ulrich, a Goldman Sachs distressed trader, resigned last Thursday to join a new fund, the name of which could not be determined by press time. Ulrich had been at Goldman since 1997 after a two and a half-year stint at Lehman Brothers. Officials at Goldman could not be reached and a spokesman declined to comment.

Wachovia Securities recently released its collateralized debt obligation deals on Intex Solutions, making it the fourth CDO underwriter to do so. Goldman Sachs, Morgan Stanley and Salomon Smith Barney also distribute deals on Intex (BW, 9/9). CDO market analysts agree that a greater number of firms using the same CDO analytical software means more transparency for the CDO secondary market.