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Bank of America is providing a $125 million credit facility to help back DigitalNet's $223 million acquisition of Getronics Government Solutions. "The feedback on the credit has been extremely positive," said Craig Bondy, v.p. at GTCR Golder Rauner, the private equity firm sponsoring the deal. "I think it has a lot of momentum." A banker familiar with the facility agreed, adding that the credit was shaping up well, most likely as a club deal. B of A officials declined to comment.

GSC Partners Europe, a private investment firm specializing in debt, is developing a European collateralized debt obligation business and plans to launch its debut deal by the end of the first quarter. Peter Firth, director, says the first deal will be a E350 million collateralization of senior loans and the firm has already tapped Lehman Brothers as an underwriter. GSC Partners already has a E1.1 billion mezzanine debt fund and is getting into CDOs to expand its European business by capitalizing on its expertise in loan investing. GSC Partners Europe is the London-based subsidiary of Florham Park, N.J.-based GSC Partners, which manages roughly $6 billion.

High-yield portfolio managers are ready once again to invest in new deals, but bankers say supply will fall short of the renewed demand. The appetite, which is apparent from the success of recent new issues such as the $975 million deal from Dex Media East, and last week's $450 million 8.75% offering from Owens-Brockway, has translated into demand for companies producing free cash flow with a potential to delever.

A E6 billion multi-originator residential mortgage-backed securitization, Siena Mortgages III, is due to be priced the week of November 18. Stefano Spina, syndicate banker at the deal's sole arranger, MPS Finance, says price talk will be available this week. The deal is backed by assets from four Italian mortgage lenders, Monte Paschi Dei Siena, Banca Toscana, Banca 121 and Cariprato.

J.P. Morgan Fleming Asset Management, in a move to consolidate and cut costs, has let go five team leaders in its fixed-income team, according to BW sister publication Money Management Letter. Those released include Jay Gladieux, the top portfolio manager on its $12 billion broad-market fixed-income portfolio, Donna Lloyd, head of the liquidity sector team, Blake Witherington, head of credit research, John Fenn, head of the high-yield bond management team, and Thad Carlson, head of the Treasury and agency bond team. Additionally, Gilbert Van Hassel, head of global fixed-income, has been transferred to global head of technology and operations for investment management, and has been replaced by Seth Bernstein, cfo for investment management and private banking. Spoksman Darin Oduyoye said the five portfolio managers were let go because their positions had been eliminated. He declined to comment further.

Levels for Microcell Telecommunications' bank debt ticked up from the 20s to the 35-40 range last week as investors consider a restructuring for the Canadian wireless company. No trades could be confirmed, but one trader said, "Everyone is trying to sell it."

Nextel Communications' term loan "B" broke into the 90s last week, with trades taking place at 91 and 90. "If the bonds keep rallying, then there is no reason for the bank debt not to get stronger," one trader said, explaining that the company had been retiring $2.6 billion in debt by swapping the bonds for equity. And a Nextel spokeswoman noted that more retirement of debt is possible. "What our ceo and cfo have said publicly is that, just as we acquired investments opportunistically, we will also retire debt opportunistically," she said.

Oaktree Capital Management has closed on OCM Opportunities Fund IVb, a $1.339 billion distressed debt fund, and will be shopping for names over the next several months in a market awash with distressed paper. The completion of the new fund comes hard on the heels of its $2.1 billion OCM Opportunity Fund IV, which closed last December. "Fund IV closed quickly in 2001 with Oaktree's existing client base. Fund IVb, intended mostly for new clients, followed in 2002," said Howard Marks, chairman of the Los Angeles-based firm.

The announcement of operating losses from OM Group's cobalt metal products and uncertainty about covenant relief resulted in a downgrade by Moody's Investors Service. Ratings on both the company's $325 million revolver and its $600 million term loan "C" were lowered from Ba3 to B2 and are under review for a further possible downgrade.

The California Public Employees' Retirement System plans to invest $25-50 million in collateralized debt obligations in the coming months. The largest public pension fund in the U.S., with assets totaling approximately $136 billion, will likely make its first ever CDO investment before year-end, Mark Anson, cio, told sister publication Derivatives Week.

The California Public Employees' Retirement System plans to make its first investment in collateralized debt obligations in the coming months, according to BW sister publication Derivatives Week. CalPERS will likely invest $25-50 million before year end, according to Mark Anson, cio in Sacramento. CalPERS is the largest public pension fund, with assets totaling approximately $136 billion.

Andrew Langerman, a veteran collateralized debt obligation structurer, has left Deutsche Bank. A CDO market source says that Langerman left three weeks ago. Veteran Ted Meyer, a spokesman with DB, confirmed the departure but declined to comment. It could not be determined to whom Langerman reported. Brian Zeitlin, global head of CDOs, did not return calls. Calls to Langerman's residence were not returned. A CDO analyst at a rival firm says Langerman has been involved with CDOs since this market began in the mid 80s.