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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.

Oh Loan-eo, Loan-eo, Wherefore art though Loan-eo ... A Banc of America Securities loan analyst got a little carried away with Shakespearean references, with this phrase just one of many puns which included--Much Ado About Nothing, As You Like It, CP or Not CP and Measure By Measure--in a recent report on the market. According to sources, almost the whole of the loan group did not want this theme, but after a fight, Loan-eo was authorized. The only surprise from all this thespian fare is why the most pertinent quote was left out. "Neither a borrower nor a lender be."

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.

Sankaty Advisors, the fixed income outfit affiliated with Bain Capital, has tapped Deutsche Bank to be the underwriter for its latest collateralized loan obligation, Race Point II. The high-yield loan CLO is said to be in the region of $400 million, according to sources. Sankaty already has over $6 billion in assets under management and completed a $500 million CLO called Castle Hill Ingots last year (LMW, 9/15). Managing directors Jonathan Lavine, Diane Exter, who focuses on loans, and Kristin Mugford lead the portfolio management team. A Standard & Poor's report on the firm produced in conjunction with the rating of Race Point CLO states the team's track record compares favorably with its peers of the same vintage, with Sankaty generally holding a lower percentage of "CCC" rated securities and defaulted securities. Calls to Lavine were referred to a spokeswoman who could not provide comment by press time.

Structured finance analysts are highlighting the increasing number of collateralized debt obligations that include a first loss AAA tranche that is subordinated to the senior most AAA tranche. The most recent example is Merrill Lynch Investment Management's Longhorn CDO III, a $300 million collateralized loan obligation that priced earlier this month. The two senior-most AAA tranches priced at LIBOR plus 55 and LIBOR plus 111 basis points, respectively. Joe Matteo, a portfolio manager with Merrill, could not be reached by press time.

Art Kenny, a former v.p. in global sales and trading at Salomon Smith Barney, has been scooped up by The Seaport Group. Due to Kenny's experience with the Latin American sector, he has been brought on to be a sourcer for the firm's loan group and will help Seaport expand its Latin American presence in addition to working with the existing U.S. clients.

Veritas DGC has closed on a $250 million credit after tweaking the deal to appease investors. During the seismic data provider's three-month stint in syndication, the facility faced a difficult lending environment for companies in the energy sector, explained Matt Fitzgerald, Veritas' cfo. "Pricing was a bit higher than we initially thought it would be," he said. Tranches reached rates as high as LIBOR plus 71/2% after launching in the LIBOR plus 21/4-31/ 2% range (LMW, 11/4). He noted that the final pricing still reduced the Houston-based company's borrowing cost compared to its notes priced at 93/4%, which are scheduled to be redeemed today.

Adelphia Communications' bank debt regained ground last week after Bank of America released an extensive research report on the company touting its Century Cable Group as the "steal of the century." Levels for Century Cable's term loans rallied from the mid 60s, where pieces of the paper traded two weeks ago, into the 70-73 range. The report puts in writing what a lot of people have been saying about Adelphia for some time, said market players.

Credit Suisse First Boston and Deutsche Bank shifted $65 million from AmeriPath's "B" piece to an upsized $275 million bond deal last week. Pricing was also boosted with the $225 million institutional loan increasing from LIBOR plus 33/4-41/ 2% with an original issue discount of 99. The revolver was shaved down $10 million to $65 million and maintains a spread of 31/2% over LIBOR. The now $290 million facility backs plans by Amy Acquisition Corp.-- a Welsh, Carson, Anderson & Stowe company-- to acquire the cancer diagnostics provider. An AmeriPath spokeswoman, a Welsh Carson official and a Deutsche Bank banker did not return calls. A CSFB official declined to comment.

Aspen Marketing Group has consolidated its credit facilities in conjunction with tapping its lead bank, BNP Paribas, for an additional $5.5 million revolver. The company had five separate credit facilities in the form of term loans totaling approximately $100 million, which were issued on a one-off basis as the company needed them, explained Donald Danner, Aspen Marketing's cfo. Rolling the credits into one deal is easier from an administrative perspective, noted Danner.

The $470 million refinancing credit for KinderCare Learning Centers was yanked from the market last week as the company and equity sponsor Kohlberg Kravis Roberts & Co. balked at proposed changes to the deal. "The reason we backed off on the credit facility was that the terms were not acceptable to the company," said Dan Jackson, cfo. He declined to discuss particulars, but KKR's reluctance to offer more than stock as security is believed to be the major sticking point. The company will instead go for a commercial mortgage backed securities deal. Officials at J.P. Morgan and Citibank, the leads on the bank deal, declined to comment. KKR officials declined to comment on the situation.