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The bank debt of AES Corporation was active last week with the revolver changing hands in the 84-87 range, up from the low 80s. The recent activity in the name comes after the company announced that it would complete a new $1.6 billion credit facility. The new credit is earmarked to refinance the company's existing $850 million revolver maturing in 2003, the $425 million term loan due in August 2003 and the $263 million term loan for subsidiary AES EDC Funding II. The new credit, however, still needs 100% lender approval.

Amkor Technology extended an amendment to its bank covenants through December 2003 in order to maintain more flexibility during a severe industry downturn, according to Kenneth Joyce, cfo. When the company's credit facility was originated, the covenants were based on liquidity and cash flow, Joyce noted. But as the West Chester, Pa., company was hit by the technology slump, it could no longer uphold the same terms. The current covenants were implemented for the year ending this December but, because the company had not violated the covenants this year, the lenders felt comfortable extending the amendment through December 2003, he said.

Moody's Investors Service has placed all of Broadwing's ratings on review for a possible downgrade, reflecting concerns that the company's funding needs and covenant compliance demands will continue to fall under pressure in the near term. Ratings under review include the Cincinnati-based communications service provider's senior secured debt--comprising three term loans and a revolver totaling $2.3 billion--rated Ba3, as well as $46 million in senior subordinated debt rated B3.

Calpine's bank debt traded in the high 70s last week, with market players attributing the paper's dip to sector problems and bank holder disappointment concerning the use of proceeds from a recent asset sale. The bank debt dipped down from the high 80s, where it was said to have traded a couple of weeks ago. "We can't find a bottom on this," one dealer said, noting that bids keep sinking and offers slide right after.

A $4.7 billion refinancing for CenterPoint Energy, previously Reliant Energy, was pulled from the fire in the wee hours of Friday morning after tough terms were demanded by the banks. As first reported on LMW's Web site, the company secured the crucial refinancing after blowing its original deadline of Thursday at 5 p.m. West LB was the sole holdout as the deadline passed, but the bank ended up coming in on the deal, quashing the threat of a potential Chapter 11 filing. A spokesman for CenterPoint said WestLB and 29 other banks agreed to the new financing. The company is required to raise $400 million of third-party capital to replace maturing debt and, if the capital is not raised, the credit facilities will mature on Nov. 15 this year.

Citigroup/Schroder Salomon Smith Barney is seeking to rebuild and expand its European securitization research team. Richard Pagan, co-head of European credit research in London, says the firm is still discussing the size of the team, which had consisted of one analyst until Shaker Sundaram, then its only European securitization analyst, left to become a salesman at UBS Warburg (BW, 8/25). Since Sundaram's departure, Pagan says the firm has determined "a team of one is too small." Now, Citi/SSSB is looking for a securitization research head to replace Sundaram as well as a few other analysts.

The proposed $525 million senior secured credit facility for coal producer Massey Energy is secured by high-quality accounts receivables and inventories, which should realize substantial recovery under a liquidation scenario. However, in the event of a default or bankruptcy, the secured debt holders are unlikely to receive full compensation. As a result, Standard & Poor's has assigned the credit a rating of BBB-.

The notes for Hewett's Island CDO, CypressTree Innvestment Management's innovative collateralized debt obligation, were priced late last month. The $257.5 million vehicle, which consists of 80-85% senior secured loans and 15-20% high-yield bonds, is distinct due to structural features designed to reduce negative arbitrage, market officials explained. The excess spread will be used to pay down the most expensive debt first, improving cash flow and boosting the return on equity over the life of the vehicle (LMW, 9/30). Links Securities underwrote the notes for the Boston-based asset manager.

Last week, Financial Research Associatesheld the Distressed Debt Summit 2002 at the Princeton Club in New York City. Highlights included trends in defaults and recoveries, advanced workout strategies and opportunities for distressed investors. Reporter Molly Jackson Sellwas on hand and filed the following stories.

Last week saw weakness throughout the high-yield market, except for a slight rally on the back of equities Thursday afternoon. Media and energy were among the stronger performers, though prices were still lower in these sectors. The primary market remains closed to most issuers, but FMC Corp., a chemical manufacturer, sold $355 million of senior secured notes. Here is other action.

David Weigert is joining Hartford Investment Management's asset-backed securities group as an ABS analyst with a special focus on home equity bonds, says Allan Berliant, ABS group chief at HIMCO, who hired him from Aeltus Investment Management. Weigert was an ABS trader at Aeltus, also located in Hartford. He could not be reached for comment. Weigert will report to Berliant and will start next Monday.

Aryeh Bourkoff, high-yield cable and satellite analyst at UBS Warburg in Stamford, Conn., will add equity coverage to his research duties. It could not be determined who, if anyone, handled equity coverage previously. Bourkoff referred questions on the subject to Kris Kagel, a UBSW spokesman, who declined comment.