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Bankers evaluating Steve Wynn's $2.4 billion development of high-end Las Vegas hotel and casino Le Reve are reaching the conclusion that the disadvantages of being away from the hub of the resort are more than compensated for by having the only golf course on the strip. The casino, which is believed to be grander in vision than the famed Venetian, has not yet broken ground. But some bankers already are looking forward to testing out the golf theory. Hmmm, the casino or the golf course. Life's tough as a gaming lender.

The Loan Syndications and Trading Association is looking to revise the industry's standard amendment procedures to kill the potential for another XO Communications imbroglio. Allison Taylor, chairwoman of the LSTA, said the changes are being sought so that a situation like that surrounding XO never happens again. The LSTA is working on closing the issue, but there are many lawyers involved in streamlining the documentation process. In addition, the LSTA is an advisory body, not a regulatory authority, so it is up to market participants to decide whether they will follow its recommendations.

Lehman Brothers has flexed up its refinancing credit for Regal Cinemas by 25 basis points after trying to get through the market with a LIBOR plus 21/ 2% deal that also attempted to ease covenants. "Lehman went out at 250 over, but had to flex upwards to 275," said an investor, who estimates the market has backed up anywhere from 1/4% to 3/8% in the last two weeks. But Regal still gained a 3/4% interest spread cut, though the intention was for a 1% drop, said a banker, who noted the credit is now fully subscribed.

Merrill Lynch's recent appointment of Marc Pinto as its new head of credit research for the Americas, led to the demotion of Clare Schiedermayer, who had been promoted to the position just over six months ago (BW, 1/13). Schiedermayer stays on as managing director and retail analyst.

Moody's Investors Service continued its recent spree of downgrading companies in the power sector last week by slashing the rating of NRG Energy and its parent Xcel Energy. The senior unsecured rating of NRG was lowered from Baa3 to B1, while that of Xcel was lowered from A3 to Baa2. The ratings of both companies remain under review for possible further downgrades.

Conservative investors, plentiful new issuance and the summer doldrums combined to slow par trading activity to a crawl last week. The only signs of life came early last week when small pieces of Nextel Communications and Adelphia Communications' Century Cable paper traded in the Street, traders noted.

The roughly $31 billion Oregon Public Employees' Retirement System, in an effort to build upon its investment in distressed debt, has awarded a $75 million mandate to Oaktree Capital Management. Jay Fewel, senior equities investment officer, said Oregon chose to invest with Oaktree because the pension plan has a long-standing relationship with the firm that stretches back to the early 1990s. The mandate, which was awarded early last month, will be invested through Oaktree's $1 billion OCM Opportunities Fund IV-B, he noted. Officials at Oaktree declined to comment.

Wayne Lyski will step down from his position as chairman and cio of fixed-income at Alliance Capital at the end of the year. As reported last week on Bondweek.com he will stay on as a special advisor to Bruce Calvert, ceo, until Jan. 31, 2004. "Part of the interest for me is in product creation and development. That will always be a feature of this business, but the pace of it has slowed and will continue slow because the business is more mature," says Lyski, explaining the the reason for his decision. He will be 61 when he retires. His duties will be taken over by the heads of the various business units, though the position of chairman and cio may eventually be re-established, he says. Kathleen Corbet, ceo of fixed-income, will become more active on the investment side of the business.

Goldman Sachs last week had gained $200 million in commitments for Verizon Wireless of the East's $350 million "B" loan, as investors weigh the rich spread against the addition of further telecom exposure. "Most investors are full of telecom or are hurting from losses," a banker familiar with the deal said. "This might be telecom, but it is also single-A paper and is highly attractive to CLOs."

Incapital LLC, a boutique investment bank that underwrites and distributes fixed-income products to individual investors, is assembling a syndication team in London, say officials familiar with the plans. The firm is in the market to hire a syndication head as well as several syndication bankers to build its London team. Brian Walker, managing director at Incapital in Chicago, referred calls to Tom Ricketts, ceo, who did not comment by press time.

Compass Minerals, an Overland Park, Kan., producer and marketer of salt and specialty potash, paid off $20 million of its $150 million "B" loan in June and is planning another $10 million payment this month. "At the financing roadshows, the stated goal was to pay down debt," saidRodney Underdown, cfo. In the first quarter of this year, Compass paid down almost $40 million off its $135 million revolver, he noted.

Levels for Crown Cork & Seal's bank debt were down early last week on news that the company had pulled its spin-off of Constar International, but the paper recovered somewhat on rumors that a refinancing is in the works. Some $10 million of Crown Cork paper traded in the high 80s on the news, and dealers claimed that a lot more than that traded hands.