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Banc of America Securities has hired an additional European economist as part of its expansion plans. Holger Schmieding joins the firm from his own independent economics shop, which he says he recently sold. Prior to running his own show, Schmieding worked at Merrill Lynch. Schmieding will work with Lorenzo Codogno, co-head of European economics in London. The duo reports to Mickey Levy, New York-based head of global economics.

Credit Suisse First Boston supplanted incumbent Lehman Brothers to lead a $515 million recapitalization for restaurant-chain Buffet's after the Lehman bankers who led the original leveraged buyout in 2000 departed the firm. With the door open, CSFB leveraged its position as lead on existing mezzanine debt and walked in with a pledge to appease mezzanine investors, who needed some caressing. "Getting the mezz holders to agree to the terms was important, and they were due some serious pre-payment penalties," one banker said. The credit hit the market last week.

Tough competition in the contact lens-care products (CLCP) and ophthalmic surgical products sectors, along with a changing U.S. market for contact lens solutions, are strong factors impacting Advanced Medical Optics' (AMO) debut bank facilities, according to ratings agencies looking at the deal. The $140 million in senior secured bank debt, split between a $40 million, five-year revolver and a six-year, $100 million term loan, has been rated B1 by Moody's Investors Service, while Standard & Poor's views the bank debt a notch higher at BB-. The bank deal, launched last week week by Merrill Lynch and Bank of America, and $175 million in senior subordinated notes, backs the spin-off of AMO from Allergan (LMW, 6/3).

UBS Warburg and Deutsche Bank will launch a $165 million high-yield bond deal and syndicate a $30 million revolver to back the buyout of Dave & Buster's by senior management and Investcorp. The acquisition price is $255 million, including the assumption of Dave & Buster's debt, explained an Investcorp spokesman, who declined comment on the structure of the financing. A banker familiar with the deal said the company is more interested in long-term money than with using bank debt to fund the deal. Pricing has not yet been decided. "It is likely UBS and Deutsche Bank will look to bring in a couple of Investcorp relationship banks on the revolver," said the banker.

BANK ONE is shopping a $100 million, five-year "B" loan for Acuity Brands, after the Atlanta-based lighting and specialty chemicals company realized the pro rata market was essentially closed for further business. "We want an extra $100 million for liquidity purposes, but we realized it would be very difficult to get from the banks," said Dan Smith, treasurer for Acuity, explaining the move to the "B" market. BANK ONE closed on a $105 million, 364-day and $105 million, three-year line in March, after the company originally targeted $200 million in borrowings.

Small pieces of Adelphia Communications' Century Cable bank debt traded on the Street last week, starting the day at 88 and then falling to the 84 3/4 range after Moody's Investors Service downgraded Adelphia and its operating companies. The ratings agency said the downgrades reflect the recovery values in the face of an "imminent bankruptcy." One dealer said that, while market players expect a bankruptcy filing, the downgrades caused vehicles to sell, putting downward pressure on the price.

Apria Healthcare is reportedly looking for a 100 basis points cut on it's $175 million "B" loan after a government investigation into the company's Medicare billing practice led nowhere. "The hot market and shortage of paper also is allowing issuers to return to the market and get cheaper deals," said a banker. Bank of America is leading the BBB-/Ba1 deal and is looking to take pricing from LIBOR plus 3% through a 100% amendment. One banker familiar with the deal said, "The government cost the company a lot of money unnecessarily."

A sell-side and buy-side analyst say it is time to begin reducing exposure to high-grade retailers, given the recent strong performance of the sector and the widespread belief that the economy is improving. However, they have differing views about which high-grade retailers should be taken off the table. A large East Coast buy-side firm has begun reducing exposure to high-grade retailers such as Albertson's Inc., Kroger Co. and Safeway Inc., primarily on the view that the names are too tight relative to the rest of the high-grade market. An analyst at the firm has expressed concern that these supermarket chains may take on more leverage a year or two down the road as they become increasingly acquisitive in order to stave off increasing competition from Wal-Mart Stores. Last Monday, the Safeway 6.5% notes of '11 (Baa2/BBB) were 100 basis points over Treasuries, the Kroger 6.8% notes of '11 (Baa3/BBB-) were 120 off the curve and the Albertson's 7.5% notes of '11 (Baa1/BBB+) were 105 off.

One analyst says investors should buy Tyco International, another says they should not. The divergent opinions follow L. Dennis Kozlowski's resignation last week as ceo of the conglomerate, and his indicted for tax evasion. Last Tuesday morning, when an indictment appeared probable, Tyco's 6.75% notes of '11 (Baa2/BBB) were trading at a bid of 82, six points below where they had traded the previous week.

Aashish Ponda, head of credit derivatives for Asia ex-Japan at ABN AMRO in Singapore, has resigned, according to officials at the firm. "He focused the team on structured transactions," noted one credit derivatives trader at a rival firm, noting that ABN put its emphasis on structured credit transactions rather than market making in default swaps.

The International Swaps and Derivatives Association is in the early stages of forming a steering committee for the development of a standard weather derivatives confirmation, according to Ross McIntyre, director, weather risk at Deutsche Bank in London. He added that Deutsche Bank wants to be actively involved in the process because the market needs to have one standard to make it more efficient.

Goldman Sachs last week completed a $450m convertible for China Development Financial Holding (CDFH), the Taiwanese financial holding company. Deal officials responded to criticism of an earlier deal the bank had arranged for Cathay Financial by offering more conservative terms and the inclusion of a syndicate. But the CDFH deal only just squeezed home.