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The Financial Services Authority, the UK regulator, this week published a consultation paper on the prehedging activity of investment banks ahead of launching exchangeable or convertible bonds. The paper will cause debate in the equity-linked world, as investment banks frequently line up hedges, either informally or formally, before officially launching a bond.

Rating: A3/BBB+/A- Amount: Eu100m

HypoVereinsbank and Mizuho have successfully completed the first round of syndication of the debt facilities backing the Doughty Hanson-led buy-out of auto parts company Auto Teile Unger (ATU). Some five banks have committed to the pro rata portion and seven funds have joined the mezzanine and the 'B'/'C'institutional investor carve-outs.

Mandated arrangers ABN Amro, ANZ Investment Bank, Crédit Lyonnais and Standard Chartered will close senior syndication of the $250m multi-tranche facility for Reliance Industries today (Friday). The deal will be launched into general syndication in the next two weeks. Sub-underwriters have been invited to either underwrite $25m or join with $15m on a take-and-hold basis as arrangers

The deadline for bids to arrange the Eu130m seven year facility for the City of Budapest was July 30. The borrower is expected to announce the successful bidding group in the next two weeks. The facility carries a margin of 25bp-30bp over Euribor. A banker told EuroWeek that due to a shortage of credits of this type in the market competition for the mandate has been intense.

Sole mandated arranger RBS is in the market with a Eu133m wind-power financing for Edens SpA - a wholly owned subsidiary of Edison. The 14 year transaction pays an initial margin of 100bp over Euribor, rising to 120bp over the deal's term. Banks have been offered a single ticket of Eu20m for 60bp in fees.

Co-ordinating arranger JP Morgan has closed the ¥8.75bn leverage LBO facility for Tower Records KK. JP Morgan held ¥830m. Lead arrangers are ING pledging ¥930m and Aozora Bank, Bank One, Bayerische HypoVereinsbank, United Overseas Bank and WestLB contributing ¥830m apiece.

Mandated arranger Citigroup/SSB has closed senior syndication of the $75m three year facility for JSC Kazakhmys. The deal has been well received and was 60% oversubscribed. Deutsche Bank, SG, ING, Natexis Banques Populaires, KBC and Crédit Lyonnais all joined during senior syndication. Two further banks are understood to be joining in general syndication before the deal is signed on August 12. The deal pays a margin of 350bp over Libor for the first 18 months, rising to 375bp over Libor thereafter. Co-arrangers have been offered takes of $20m for a fee of 75bp.

Rating: AAA (Fitch) Amount: Eu100m Landesschatzanweisung series 140

Rating: Aaa/AAA/AAA Amount: A$50m (fungible with two issues totalling A$150m first launched 06/12/01)

Rating: Aa1 Amount: Eu50m Kassenobligation no 2307