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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.

WaMu Capital Corp., the mortgage-backed securities trading subsidiary of Washington Mutual, continues to flesh out its nascent MBS effort. It has hired whole-loan collateralized mortgage obligation trader and structurer David Nagle from Banc of America Securities, says group chief Tim Maimone. Nagle had left the firm and was unavailable to comment. A call to Pat Augustine, head of B of A's MBS group, was not returned. Maimone says Nagle will be in charge of developing the firm's whole loan CMO strategy, including structuring and trading.

J.P. Morgan and Citibank were said to be in talks last week to revamp KinderCare Learning Centers' $470 million refinancing credit after investors called for more than just stock to back the deal. Kohlberg Kravis Roberts & Co. owns about 80% of the company and traditionally secures its deals only with stock, investors said. But with concerns about issues such as the childcare company's low organic growth rate and negative free cash flow figures, some market players are passing on the deal if it's only secured by stock. One investor added that pricing tweaks could also be in order. The deal launched last month and includes a $350 million "B" loan and a $120 million revolver priced in the LIBOR plus 3-3 1/4% range. A J.P. Morgan spokesman said there were no changes to the credit as LMW went to press last Friday and he would not comment as to future revamp plans. Calls to Dan Jackson, cfo of KinderCare, were not returned.

Italy will use securitization as part of the E19 billion financing for its high-speed rail network, says a Treasury official in Rome. Infrastructurre SpA has been established as a company to complete rail work in a public private partnership, similar to those created in the U.K. to finance and complete infrastructure deals. Andrea Ripa di Meana, ceo of Infrastucturre in Rome, could not be reached for comment.

J.P. Morgan and FleetBoston Financial may have to increase pricing on a $250 million credit for National Mentor as the banks struggle to attract investors. Commitment levels for the BB- rated deal that was launched on Feb. 10 could not be determined. "Investors have been a little more wary these days of non-investment grades. It's not specific to the company so much as the general look of the market," a source said. A FleetBoston official declined to comment.

Merrill Lynch hired Chris Ricciardi from Credit Suisse First Boston as global head of collateralized debt obligation origination and structuring, according to an internal memo obtained by Bond Week. Ricciardi will report to Mac Taylor, managing director and head of global structured products. He will be in charge of all CDO asset classes, working closely with the CDO trading and distribution team. Taylor declined to comment. Ricciardi resigned from CSFB last Tuesday. Michael Duvally, a spokesman at Merrill Lynch, declined to comment. Ricciardi could not be reached for comment. He is expected to join Merrill Lynch in the coming weeks.