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WEEKLY UPDATE

Charles Kinzer, a top Credit Suisse First Boston mortgage-backed securities salesman, and one of the high-profile "group of 40" who almost left for Barclays Capital in 2001, has taken a leave of absence from the firm, said residential MBS group chief Matt Ruppell. Calls to Kinzer's Manhattan residence were not returned. Ruppell says that a decision on replacing him "is a difficult one since he was such a big part of things here. We're trying to come up with a solution as we talk." He acknowledged that Kinzer covered Freddie Mac for the firm, an account that many firm veterans peg as likely the firm's largest MBS revenue producer. Ruppell says the Freddie account had not been reassigned as of last Thursday.

Underwriter Deutsche Bank has priced the notes for Oak Hill Advisors' approximately $500 million collateralized loan obligation called Oak Hill Credit Partners II. The cash-flow deal will be approximately 85% loans with a 15% bond bucket, according to one portfolio manager. The amount of collateral already bought for the deal could not be determined. Officials at Oak Hill declined comment, referring questions to Deutsche Bank. The banker responsible for the deal did not return calls.

Bear Stearns and Merrill Lynch closed the books on Penn National's $800 million acquisition credit, with about 55 accounts signing onto the deal. A banker familiar with the facility said a Feb. 10 price flex as well as some other credit changes led more investors to buy into the facility. The "B" piece was half filled before the changes. Pricing ended up at LIBOR plus 4% on the $600 million "B" piece and LIBOR plus 31/4% on the $100 million revolver and "A" piece for the same amount. There was a 50 basis point commitment fee for pro rata retail commitments above $10 million, while a 12.5 basis point upfront fee was being offered on the "B" loan (LMW, 2/17).

ABN AMRO is creating a new U.S. asset securitization group and has nabbed Jim Moore, who was a v.p. of non financial institutions at J.P. Morgan Securities, to run the group out of New York. Moore, who started last week, will oversee term asset-backed securities, asset-backed commercial paper and mortgage-backed securities. He reports to John Mullen, global head of structured credit markets in London, who declined to comment on the move. Patrick Phalon, a spokesman at ABN AMRO, also declined to comment and Moore could not be reached for comment.

Credit Suisse First Boston and Deutsche Bank are launching this Wednesday a $365 million deal backing plans by Amy Acquisition Corp.-- a Welsh, Carson, Anderson & Stowe company-- to acquire cancer diagnostics provider AmeriPath. The bank duo will be shopping a $290 million "B" piece at LIBOR plus 33/4% and a $75 million revolver. Pricing on the revolver could not be ascertained. The transaction is valued at $839.4 million, including AmeriPath's 2002 debt and an estimated $65.1 million in assumed contingent obligations (LMW, 12/16). CSFB and Deutsche Bank bankers did not return calls.

Fixed-income analysts are divided on how investors should play the bonds of Tyco International following a review of the company's recently filed first quarter 10-Q report. An independent fixed-income analyst is reemphasizing her view that investors avoid the bonds. However, a sell-side analyst argues that, barring a dramatic worsening of the economy, Tyco bonds will trade on a spread basis before year-end. Tyco's benchmark 10-year issue, the 6.375% notes of '11, were bid at 92 last Wednesday. Trading on a spread basis--as opposed to dollar quotes--is usually taken as an indication that high-grade investors are once again actively involved in the credit.

Nova CDO 2001, a collateralized debt obligation managed by Phoenix Investment Partners, with Antares Capital Corp. as the bank loan advisor, is suffering from deterioration in the credit quality of the underlying collateral and is out of compliance on all four of its overcollateralization (OC) tests, according to Mark Froeba, v.p., senior credit officer within the stuctured finance group at Moody's Investors Service. The deal, which closed in May of 2001, is predominantly a bond vehicle with a loan component.

Five banks pitched Dole Food Company's $1.15 billion acquisition financing package to senior managing agents last Thursday with price talk in the LIBOR plus 3-33/4% range. A $600 million "B" piece is being offered to buysiders, joining the parade of hefty institutional pieces that have flooded the loan market this year. Officials familiar with the deal quoted the "B" spread in the 33/4% over LIBOR range. A pro rata $300 million revolver and $250 million "A" piece will also price between LIBOR plus 3-31/2%, according to a banker. One investor noted that the deal is collateralized by real estate (LMW, 1/6). Deutsche Bank, Scotia Capital, Bank of America, Société Générale and FleetBoston Financial are shopping the deal.

Barclays Capital has hired Adam Barrett, who formerly headed financial institutions fixed-income sales at Goldman Sachs in London. A Barclays spokeswoman says he will be managing director and European head of wholesale solutions and client coverage, including transitions management. A spokeswoman at Goldman says Barrett left the firm late last year. Barrett could not be reached for comment.

Lead manager Citigroup/SSB priced two series of mortgage backed notes from Citigroup's Compass master trust programme last Friday. The programme was a precursor to the UK's MBS master trusts, and has now reached 13 series. The $260m offering was split into two equal portions, of three and four year maturities. Each series comprised a A$125m senior tranche, rated triple-A by Moody's and Standard and Poor's, and a A$5m A2/A rated junior piece.

Australia Australia regained its AAA foreign currency rating from Standard & Poor's - after a gap of 17 years- when the agency upgraded the country from AA+ this week.