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Deutsche Bank last Tuesday launched syndication of a $240 million credit backing Grant Prideco's, $350 million acquisition of Reed-Hycalog from oil field service-company, Schlumberger. The line will consist of a four-year, $50 million "A" term loan priced at LIBOR plus 23/ 4% and a $190 million revolver with a LIBOR plus 21/ 2% spread, explained an official. There is a 1/2% fee for $25 million commitments and a 35 basis point fee for $15 million commitments. The company also intends to raise $175 million through a private placement of senior unsecured notes due 2009. If the bond offering does not pan out, there is a committed provision for a supplemental bridge loan, the banker said. The credit is fully underwritten and is an asset-based deal, he added. A Deutsche Bank spokesman declined to comment.

R.H. Donnelley's $850 million "B" piece has been oversubscribed and was set to close as Loan Market Week went to press, said a banker familiar with the credit. The remainder of the $1.55 billion loan package is expected to close early this week, with final terms scheduled to be completed after the holiday, he added. Lead banks Deutsche Bank, Bear Stearns and Salomon Smith Barney priced the "B" tranche at LIBOR plus 4%, while the spread on the $125 million revolver and $575 million "A" loan is LIBOR plus 31/ 2%. The deal also includes pre-payment penalties. Bankers on the deal either declined to comment or did not return calls.

Bell Actimedia's C$1.64 billion directories deal is en route to closing this week after some structural and price changes. The $725 million (C$1.1 billion) "B" loan is now a $625 million (C$950 million) "C" loan. A $100 million, six-and-a-half year "B" piece, denominated in Canadian dollars, has been carved out due to market demand, said a banker. Pricing was flexed from LIBOR plus 4% to LIBOR plus 41/ 4% on the "C" and there is a 1% original issue discount, he added. The tenor on the "C" tranche is eight-and-a-half years and there is call protection at 101, a banker added.

A $10 million auction of AES Corp. bank debt went off in the low 80s last Monday, said traders. The buyer and seller could not be determined. The auction occurred as the Dec. 3 deadline approaches for a crucial exchange offer of up to $500 million of senior notes due 2002 and 2003 for new securities and cash. "It's very critical that they have that refinancing," said Mona Yee, a Fitch Ratings analyst. The company has $300 million of senior notes that mature on Dec. 15. If AES cannot complete its exchange, meeting that maturity will be difficult, explained market players.

At least three high-grade sell-side analysts and one investor argue that a number of telecom credits have likely gotten ahead of themselves. Seven of the nine U.S. credits in the sector were trading through their 18-month averages last Tuesday, according to Doug Colandrea, head of high-grade research at Bear Stearns.

Credit Suisse First Boston, J.P. Morgan, Lehman Brothers and Deutsche Bank are waiting until after the holidays to launch syndication of a $1.8 billion dollar credit backing The Blackstone Group's $4.7 billion buyout of Northrop Grumman's TRW Automotive business. "There's no way [the banks] could close it before the holidays," a banker said, saying that the delay is a calendar issue. The line will consist of a six-year, $500 million revolver and a $410 million "A" piece. The pro rata is priced at LIBOR plus 3%. There is also an eight-year, $900 million "B" term loan with a LIBOR plus 4% spread. The revolver offers a 1/2% commitment fee. Bankers on the deal declined to comment or did not return calls by press time.

Investors are gobbling up the bank debt backing Del Monte's acquisition of certain businesses from H.J. Heinz, and they're especially fond of a $300 million senior secured floating rate note being syndicated to buysiders. "It looks like a bond, but is priced at LIBOR plus 41/ 4%, has the same collateral package as the bank debt and is noncallable for five years," said one buysider. This is 1/4% higher than the $500 million "B" piece, which had already gained between $200 and $300 million of commitments a day after launching last Thursday, said a banker familiar with the deal. The investor said institutions taking the "B" would also probably be eligible for the note.

The Italian small cap market is leading a recovery in marketed transactions, with one IPO closing this week and two more set to launch next week. Fiera Milano, Europe's second largest conference centre, will next week launch an IPO which should raise Eu200m-Eu300m. On Wednesday the company received approval for its listing from Consob, the Italian regulator.

The Republic of the Philippines struggled but closed its $500m February 2013 deal on Monday, after political farce at the end of last week nearly destroyed the issue. The sovereign had announced the swiftly arranged SEC registered bond issue last Thursday. But its plans almost collapsed when reports surfaced last Friday evening that four members of the cabinet, including secretary of finance Jose Camacho, had tendered their resignations to president Gloria Macapagal Arroyo.

Swiss Life's share price leapt 7% after a firm timetable and underwriting agreement for its Sfr1.1bn recapitalisation was announced this week. The Swiss insurer now has guaranteed funds of Sfr856m from a fully underwritten rights issue, and it has the potential to raise a further Sfr250m depending on the success of a mandatory convertible that is being sold alongside the rights offering.

Russian investment bank United Financial Group has created an asset management team headed by Florian Fenner, who has been named managing partner of UFG Asset Management. Fenner joins from Unifund (Ireland) where he was an investment manager with responsibility for a Russian portfolio exceeding several hundred million dollars. Before coming to Russia in 1996, Fenner worked for German investment bank Schröder Münchmeyer Hengst.

Australia As the Australian securitisation market begins to wind down for the year end after a hectic few months, CMBS issuance is taking over from residential mortgage activity. Three deals should be priced over the next seven days.