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Caminhos de Ferro Português (CP), Portugal's state owned rail freight services company, this week launched a Eu255m structured bond via UBS Warburg. Although a rarity in the Portuguese market, dominated by MBS and lease backed deals, the deal illustrates the increasingly sophisticated use of structured finance techniques by European public bodies. Only last month FSA wrapped a Eu325m debt programme for Spanish trade fair group Feria Valencia.

Cofidis, the French consumer finance subsidiary of mail order company Trois Suisses, this week launched its third securitisation of consumer loans from its Libravou vehicle. With most ABS practitioners busy at the Barcelona conference this week, Crédit Lyonanis slipped this Eu168.5m transaction into the market. The spitting image of its predecessor in terms of size and structure, the deal enjoyed the general spread tightening in the market to price under 30bp for the first time.

The Belgian Debt Agency is considering entering interest-rate swaps to convert EUR10-15 billion (USD9.5-14.3 billion) of its floating rate debt into fixed-rate debt this year. Anne Leclercq, head of the front office, said the potential for rising interest rates in Europe is causing the debt agency to look at this option for its floating-rate portfolio, which totals USD30 billion. She added that its budgetary needs would also play a role in the decision. Leclercq was speaking at the Euromoney Global Borrowers & Investors Conference at the London Hilton on Wednesday.

A unique amendment to XO Communications' bank debt agreement has essentially halted the trading of the name in the secondary bank loan market, thereby preventing financier Carl Icahn from buying the bank debt, according to market sources. The company's bank steering committee, which includes TD Securities, Bank of American, Barclays, J.P. Morgan, Deutsche Bank, FleetBoston Financial, and Scotia Capital, passed an amendment that, according to a statement in the company's most recent 8-K filing, requires majority senior lender consent to any transfers of senior secured debt, including both assignments and participation, for up to 90 days. "That would require the approval of the banks for an assignment," said one trader. "That's a little bizarre." Calls to Icahn's office were not returned.

Roughly $80 million of Comdisco bank debt was believed to have traded out of Morgan Stanley at the 82 3/8 - 83 level this week. Traders said the firm won an auction that occurred on June 14 and promptly placed the paper with an undisclosed buyer or buyers last week. Calls to Morgan Stanley were not returned by press time.

Trading levels for Kmart's bank debt fluctuated briefly earlier this, falling a couple of points on the fear that Martha Stewart would be implicated for insider trading on ImClone Systems. One dealer said more than $20 million changed hands by Tuesday, with the 364-day facility moving in the 73-74 range and the three-year facility moving in the 67-68 range. By Wednesday, levels had recovered and the name was said to be quiet. Calls to the company's spokesman were not returned by press time.

Levels on Lyondell Chemical's bank debt moved up this week after the company announced 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.

Three leveraged credit facilities recently syndicated by Credit Suisse First Boston were oversubscribed this week, despite some investor grumbling over the opportunistic nature of the refinancings. Over the past couple of weeks, CSFB has been shopping a $255 million facility for Buffet's and a $530 million "E" term loan for Mueller. The firm also came to the market recently with a $600 million "C" term loan, jointly led by National City Bank, for OM Group. A CSFB banker declined to comment.

UBS Warburg has altered the structure of its deal for Herbalife International, backing the $685 million purchase by Whitney & Co. and Golden Gate Capital, upsizing the bond portion from $220 million to $250 million. The $165 million "B" term loan will be reduced $5 million, while $17 million of mezzanine financing will be shelved. A banker said a shortage of paper for the consumer products sector in Europe is spurring on the $100 million European bond piece. The U.S. piece will be $150 million. Pricing is expected to be in the 11-11 1/4% region.

Lyondell Chemical announced on Tuesday that it would use $200 million of the proceeds from an offering of $275 million, 10-year senior secured notes and a public offering of 7,000,000 shares of common stock to pay down existing indebtedness under the company's term loans. Traders said the name was not changing hands, but quoted the term loan "E" at 101 3/4 to 102 1/2 up from the 100 1/2 101 level two weeks ago. The term loan "E" has a call protection of 102. Doug Pike, company spokesman, could not be reached for comment.

International houses in Seoul, including BNP Paribas, JPMorgan and Standard Chartered Bank, have piled into the evolving exotic bond market in Korea, structuring range accrual notes for the first time, according to market officials. The notes, such as callable bonds, reduce funding costs for corporates and offer structures appealing to yield-hungry investors (DW, 4/28). Market officials noted that Korean investors have become interested in the structured products in recent months due to prevailing low interest rates.