Search results for

Microcell Telecommunications' bank debt levels retreated to the low 70s last week after investor demand ran the paper up into the 77-79 context two weeks ago. Market players said there are lenders looking to sell, but buyers of the paper have filled up on their capacity for the name. No trades could be confirmed. J.P. Morgan is the lead on Microcell's bank debt.

Morgan Stanley has lost two senior members of its corporate bond research group to rival firms. Matt Clark, a retail, consumer products and healthcare analyst who has appeared on the Institutional Investor All-America Fixed-Income Research Team for six straight years, has joined Salomon Smith Barney's San Francisco office as a corporate bond salesman reporting to Jeff Gibbons, managing director. Clark and Gibbons confirmed the hire, but declined further comment. Frank Henson, who had reported to Clark, is taking over lead coverage responsibilities at Morgan Stanley, according to high-grade sell-side officials familiar with the situation. Henson declined comment.

GE Commercial Finance, Bank of America and Fleet Retail Finance are pitching Kmart's $2 billion exit financing deal to managing agents this Thursday. The credit resembles the bankrupt company's existing debtor-in-possession facility, said a banker familiar with the facility. The package includes a $1.8 billion revolver and a $200 million "B" loan priced at LIBOR plus 3 1/2%, he added. The deal is secured by inventory and would be subject to the company's satisfaction of customary closing conditions. The credit will be used for ongoing capital needs when the mass merchandising retail company emerges from Chapter 11, targeted for the end of next month. A B of A official declined to comment, while Fleet and GE bankers did not return calls.

Bear Stearns is looking to add a fixed-income trader to its London proprietary trading desk. The position is newly created. Bear Stearns is looking for someone to trade European government securities and other fixed-income products. A firm spokesman says Bear Stearns is not planning a hiring spree, but simply looking for a talented trader. The desk is headed by Tim Bass, who works with one other trader.

Bank of America and Bear Stearns last Thursday launched syndication of a $225 million credit for Pinnacle Entertainment. The proceeds will finance the gaming company's construction and development of a hotel and casino resort in Lake Charles, La. The debt package includes a five-year, $125 million term loan and a four-year, $100 million revolver. Bankers familiar with the deal would not indicate pricing, but one banker noted that it would be in line with Pinnacle's BB rating. He added that total leverage would start at 5.8 times, with senior leverage below two times for the life of the facility. B of A and Bear Stearns officials declined to comment.

Banc of America Securities is looking to launch its synthetic collateralized loan obligation product into the European market. Bof A's SERVES (Structured Enhanced Return Vehicle)structures are referenced to a portfolio of U.S. high-yield loans, which is then leveraged via a total-return swap, according to firm officials. The details of the European launch are still being ironed out, noted the officials, declining to elaborate. Officials familiar with BofA expect the European offering will reference European high yield names.

Calpine Corp.'s term loan "B" ticked up a point to a point-and-a-half to the 93 level last Thursday. Paper was said to have traded at those levels after slowly climbing up during the course of the week. The bank debt grows stronger as investors feel more comfortable with the name. Although there have been recent reports that indicate valuations for power generating assets are lower, Calpine has a stock of quality assets in good locations, noted one market player. He added that assets sales were likely to get done easily.

WEEKLY UPDATE

DDJ Capital, a Wellesley, Mass.-based distressed debt investor, is believed to have bought up the majority of SLI's bank debt in the 15 context. The trades, estimated to be for about $200 million worth of paper, are rumored to have been brokered by FleetBoston Financial, which led the credit. Judy Mencher, co-founder and principal of DDJ, referred calls to a spokeswoman, who cited the firm's policy of not commenting on its investments or strategies. Calls to Fleet officials and Robert Mancini, SLI cfo, were not returned by press time.

KBC Financial Products has hired two senior analysts and a senior salesman as it continues its effort to grow its high-yield business, says Joe Garofoli, managing director at the New York-based unit of Belgium's KBC Bank.

Mike Weston, Morgan Stanley's London-based head of global head of debt syndicate, has resigned from the firm to take a break from the industry, according to a firm insider. The insider says Weston maybe interested in returning to his native New Zealand. His duties will be assumed by Raj Dhanda and Michael Heaney, who will serve as co-heads of global debt origination. They report to Walid Chammah, co-head of global capital markets. Previously, Dhanda had been head of U.S. head of debt syndication and Heaney was head of European debt syndication. A Morgan Stanley spokesman declined to comment.

National Bedding Company increased the "B" tranche of its new $235 million credit after the Bank of America-led credit met with strong institutional demand. The "B" tranche was increased by $100 million and is now set at $132 million. The credit's five-year "A" piece was decreased from $75 million to $43 million, said Jim Polark, v.p. and cfo. A five-year revolver remained at $60 million. The credit backs National Bedding's recent acquisition of the bankrupt Serta brand mattress manufacturer Sleepmaster. Polark explained that $117 million went toward the payment of Sleepmaster's debt, while $35 million went to Sleepmaster's creditors committee. The facility also refinanced the company's debt, including about $55 million on an existing $85 million term loan and revolver facility, Polark stated. Revolver usage on the new line will include $31.9 million of standby letters of credit issued to support industrial revenue bonds (LMW, 2/10).