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Wachovia Securities' $450 million bank deal for Atlanta-based Gray Communications Systems blew out within a day of launch after a bank meeting on Sept. 9. "Syndication is proceeding well," said Jim Ryan, cfo of Gray -- who would not be drawn into whether the deal would be flexed or not. "We're a name known in television and we have a proven track record in the debt markets. Gray did a loan deal one year ago in a very difficult bank market," he added, commenting on why the company thought bank debt investors would be receptive to a loan from the seasoned issuer.

The high-yield auto parts sector will remain under pressure for the foreseeable future as car companies continue to squeeze parts manufacturers on pricing, according to one buy-side analyst and one sell-sider. The buy-side analyst says the firm where he works, a Midwestern money manager, recently sold its Dana Corp. 9% notes of '11 (Ba3/BB) at 96, on the view that risks remain weighted to the downside because the industry is very competitive. He says the firm might buy the bonds back if they dip a few points, but would not sell more unless it finds a decent replacement that trades at a lower price.

The recent influx of new cash caused the higher-rated issues to trade higher last week, according to some traders. Others say the market merely trod water, though it clearly outperformed equities. Jefferson Smurfit priced a $700 million deal--the most sizeable new junk issue in several weeks. Here is selected action.

Kroll tapped Goldman Sachs for a $100 million facility, terminating its pre-existing $15 million revolver with Foothill Capital.Mike Petrullo, deputy chief operating officer, said the company went with Goldman to build on a growing relationship. "They are a terrific institution that we want a longer association with," he said. "We are also doing an equity offering in which Goldman is going to lead, so it was a really great opportunity from the financing end to be associated with Goldman Sachs and have them advise us through that and actually be the majority placement of the financing."

Dealers saidLand O'Lakes traded a few times in the 87-89 context last week. The Arden Hills, Minn.-based co-operative held an investor meeting in New York last Tuesday. One trader said the response from that meeting was neutral, but another said the situation is not good. Levels for Land O' Lakes' bank debt have been falling since the company released its quarterly earnings report, which spooked investors. Before the results came out on July 26, the company's bank debt was pricing above par (LMW, 8/19). Calls to Daniel Knutson, cfo, were referred to a spokeswoman. The company revised its full-year EBITDA down $10 million to $245 million with the key reason for that adjustment coming from the affect of low hog prices on the company's swine feed business, a spokeswoman noted. "Despite the downturn in dairy and swine, the company believes that $245 million in full year EBITDA is achievable," she said. She added that Land O' Lakes has a solid liquidity position and ample room under its covenants; retail volume in the dairy segment is likely to increase; and the Purina Mills synergies are ahead of schedule.

A $25 million piece of Tyco International's bank debt traded at 95 early last week. The move came before the Manhattan district attorney indicted three of the company's former executives. The parties involved in the trade could not be determined. One trader speculated that the indictments would have limited material impact on the company. It's under new management now and doing well, he noted.

Asset-backed bankers and traders from Credit Suisse First Boston and Dresdner Kleinwort Wasserstein recently undertook gruelling sporting feats for charity. A six-man group from CSFB including ABS syndicate banker Adrian Carr swam the English Channel in aid of NCH (formerly National Children's Home). The four-man DrKW team--Charles Hyatt, Richard Kemmish, Fraser Malcolm and Nick Morgan--trekked a 54-mile stretch of the treacherous West Highland Way in Scotland as part of the State Street Caledonian Challenge, which benefits various Scottish charities. The aim of the challenge is to complete the hike in 24 hours.

Nortek tappedFleet Capital for a $200 million senior secured revolver to pay down existing debt and give the company extra flexibility. The five-year revolver has a pricing option of LIBOR plus 2- 21/ 2%, or Prime Rate plus 1/2- 1%, with $42 million of the credit being used to replace the balance of a Fleet-led term loan that expired last month, according to Edward J. Cooney, v.p. and treasurer of Nortek. The balance of the credit will be used for letters of credit issuance and for general corporate purposes. "It's mainly for flexibility," Cooney told LMW.

Consolidated Natural Gas has wrapped up a $500 million, 364-day revolver and has cut back allocations because of strong demand. The company, subsidiary of Richmond, Va.-based Dominion, cruised through the market despite broader energy market negativity.

Credit Suisse First Boston has set pricing on the $210 million credit facility to finance technology buyout fund Francisco Partners' acquisition of Global eXchange Services (GXS). The $175 million, five-year "B" piece is priced at LIBOR plus 33/ 4%, while the $35 million, six-year revolver has a LIBOR plus 31/ 2% spread. The commitment fee is 1/2%. CSFB launched syndication last week to support the $800 million acquisition, expected to close this October (LMW, 6/30). "People understand the transaction," said a banker familiar with the deal, though there are no indications of commitment levels, he added. CSFB declined to comment on the deal.

Deutsche Bank and ABN Amro are shopping a $125 million "B" term loan for GenCorp, backing subsidiary Aerojet-General's $90 million acquisition of General Dynamics' ordnance and tactical systems, space propulsion and fire suppression business. The five and a half-year loan, which is priced at LIBOR plus 3%, also will be used to pay $5 million in transaction costs and pay down $30 million in borrowings under the existing $137 million revolver. Deutsche Bank officials declined to comment, and ABN officials did not return calls by press time.

At least four high-yield professionals who were let go from a unit of Citigroup Asset Management in July (BW, 7/14), have found new positions, according to a person familiar with the situation.