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Merrill Lynch and Bank of America's credit for Advanced Medical Optics (AMO) proved a hit with the buyside last week, with roughly 25 institutions signing on. The credit was four times oversubscribed, leading to a 1/4% reverse flex on the $100 million "B" loan, said a banker. Pricing is now LIBOR plus 31/ 4% although, if AMO achieves a four-B rating, pricing will tighten further to LIBOR plus 3%. Moody's Investors Service rates the loan at B1--one notch lower than Standard & Poor's--but has the credit on positive outlook. Merrill bankers declined to comment, and B of A bankers did not return calls.

Lyondell Chemical announced last week that it would use $200 million of the proceeds from a $275 million offering of 10-year senior secured notes and an offering of seven million shares of common stock to pay down existing indebtedness under the company's term loans. Although the name was not changing hands, traders quoted the "E" term loan at 101 3/4 102 1/2, up from the 100 1/2 101 level two weeks ago. The loan has a call protection of 102.

As lead manager DBS Holdings set out to raise around S$300m from the float of CapitaMall Trust, other property stocks were hit as investors and analysts decided that valuations of commercial property in Singapore might need to fall to the yields required by real estate investment trust (REIT) investors. REITs are seen as one of the few avenues of liquidity for property companies, which are generally over-leveraged and therefore increasingly avoided by banks and bond market investors.

The miserable state of the Japanese equity market failed to derail the sale of the government's remaining 12.7% stake in East Japan Railway (JR East) this week. Goldman Sachs and Nomura completed the 500,000 share global placement at a discount of 3% to Monday's close. However, the final price was more than 10% below JR East's market price late last week and when premarketing began on the deal in late May.

Goldman Sachs this week raised $634m through the partial sale of the stake held by the firm's private equity arm in Kookmin Bank. Before exercise of the 15% greenshoe, the bank has sold a 3.46% holding. The firm bought the stake in 1999. If the shoe is exercised, the Goldman stake will drop to 5.3%.

Global co-ordinators Goldman Sachs and UBS Warburg are premarketing the sale of 14% of stae owned Korea Tobacco & Ginseng. The GDR deal will start officially on July 1, with pricing slated for July 12. Dongwon and Hyundai Securities are joint bookrunners. Deutsche Bank, ING, LG and Samsung Securities are co-leads.

The Federation of Malaysia is poised to launch the first ever Islamic law-compliant international dollar deal and bankers at lead manager HSBC said the signs are looking good for the $500m five year 144A Reg S transaction. "We have covered the planned $500m issue size through investor orders so far and there are still roadshows to be held in London and orders still to come from the Middle East," said a banker at HSBC. "So far there has been enthusiasm for the issue." The transaction is expected to be launched and priced on Tuesday.

Maxis Communications, Malaysia's largest mobile phone company, raised M$3.05bn ($803m) through the sale of 420m shares to institutional investors at M$4.85 each and 232.3m shares to individual investors at a 10% discount of M$4.36. The deal is a vote of confidence in both Malaysia and in Ananda Krishnan, considered one of the most transparent and investor-sensitive emerging Asia corporate leaders.

Moody's Investors Service has raised the debt and deposit ratings of seven Korean banks, following an extensive investigation of the Korean banking sector and its decision to raise its rating for the Republic of Korea from Baa2 to A3 in March. Following the Moody's ratings upgrades bankers are hoping to see some activity from Korean borrowers. Recently the ministry of finance and economy (MoFE) has stifled international deals from Korea Electric Power Corp (Kepco) and Industrial Bank of Korea due to the effect on the Korean won were the banks to have swapped the proceeds.

Australia Broadcast Australia is planning to debut in the domestic Australian bond market with a A$650m three tranche issue via Macquarie Bank. The transaction will consist of a A$250m tranche with a five year tenor, a A$250m piece with a seven year maturity and a A$150m 10 year portion. The issue is being credit wrapped by AMBAC.

Against a background of political unease and hostility, Indian petrochemicals company Reliance Industries has decided to launch a cash tender offer for several of its remaining international bonds. The corporate is looking to retire its 2005, 2027 put 2007 and 2026 put 2008 bonds, which total $341m. UBS Warburg has been appointed to arrange the tender.

Guarantor: Banco Bilbao Vizcaya Argentaria SA Rating: AA-/AA (S&P/Fitch)