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HSBC Securities lost the last senior member of its capital markets origination desk last week when Usman Ghani left the firm to join Bob Post, his former boss at Bear Stearns, in the financial institutions group of the capital markets division. He had been with HSBC over five years and declined comment on the reason for his departure. As of last Wednesday, the only remaining person on the HSBC origination desk was Hugo Moore, an associate, who is roughly two years out of college.

A buy-side and a sell-side analyst say investment-grade telecom and cable names are trading too far apart on a spread basis, given their overall similarities. Both analysts say the sectors have high fixed costs and high leverage. In addition, they say both industries are claiming growth that is difficult to discern due to M&A activity, and both face questions as to what extent consumers are really interested in their products.

Bids continue to rise for SpectraSite Holdings as market players speculate that the company and other tower names may choose to follow in the footsteps of competitor Pinnacle Holdings, which recently announced its prepackaged bankruptcy plan. The numbers are poor and the bids are getting firmer, one trader explained about tower companies. Dealers said that tower companies might look to clean up their balance sheets in such a manner that their bonds will get a haircut and the bank debt will be reinstated at par. SpectraSite, with its stock trading at 35-36 cents last week, could be a candidate for this type of restructuring.

J.P. Morgan is in the market with a debut $150 million institutional tranche for Trinity Industries, part of a $400 million redux on which bankers are divided, Texas-based Trinity, a maker of freight cars, box cars, gondola cars, and tank cars for hauling everything from lumber to corn syrup, is seen by some as cyclical and unattractive right now. Others said the "B" is already full. "Trinity is re-negotiating its credit lines," confirmed Jim Ivy, v.p. and cfo of Trinity. "We are cyclical, but also diversified," rejoined Ivy. "Our major business is in a major downcycle, but others are strong," he said. The company is seeking a $250 million three-year revolver and a $150 million term loan, he confirmed.

Lafarge North America, a supplier of building materials, has obtained a new $600 million credit facility replacing a $300 million, five-year revolver set to mature in December 2003 along with a $300 million, 364-day commercial paper backup line. The company needed to refinance its commercial paper back up line, so it decided to take the opportunity to secure the five-year revolver until 2007. "I know that I have a commitment for that amount of money for years into the future," said Kevin Grant, company treasurer, reflecting on the importance of the five-year line. "For cyclical companies that is important."

UBS Warburg is ready to launch syndication of the credit backing the leveraged buyout of Herbalife by private equity firms Whitney & Co. and Golden Gate Capital for $685 million. The senior secured bank debt will be in the region of $190 million, comprising a $165 million "B" loan and a $25 million revolver, said one buysider. This will leave senior leverage at a conservative 1.4/1.5 times, based on last year's EBITDA figure of $120 million, he noted. Total leverage will be closer to 3.5 times total, as a $220 million senior subordinated note offering is also planned, he added.

UBS Principal Finance, a proprietary fund owned by UBS Warburg, continues to add seasoned credit veterans to its lineup. The latest hires are Joe Mullally, formerly a senior emerging markets trader from Citicorp Financial, and Chris Melendes, former executive director and high-grade utility analyst at Morgan Stanley. Jim Switzer, head corporate bond trader at BNP Paribas, was also widely rumored to be joining the group, though he could not be reached. Mark Wisniewski, spokesman for BNP Paribas, would not confirm Switzer's reported move. Calls to Peter Abramenko, managing director and head of the credit team at UBS Principal Finance, were referred to Kris Kagel, a firm spokesman, who would not confirm any of the hires.

Goldman Sachs' and Bank of Nova Scotia's $250 million "B" loan for Las Vegas-based Venetian Casino Resort blew out in just two hours last week, surprising many in the market who believed the current appetite for gaming credits stopped at the door of the world's most famous gambling resort. "This is noteworthy, it is a success flying in the face of wisdom that only non-Vegas multi-asset resorts are attractive."

Steve Kolhagen, the head of Wachovia Securities' derivatives and high-grade bond businesses, has decided to retire after 20 years on the Street to write mystery novels with his wife. Kolhagen says that he was simply ready to "pursue something that I've had an interest in for about 10 years now," noting that although his wife has written two books, he will be learning as he goes. He says the retirement will take effect July 31, and that he will be a consultant to the firm for the balance of the year. Kolhagen says the firm is currently undertaking a search for a suitable candidate who would be based in Charlotte.

Warnaco Group's bank debt saw some action last week with more than $30 million trading in the 30-31 range this follows a massive $140 million auction from a Japanese bank at that level two weeks ago (LMW, 5/6). Dealers said the paper moved in two pieces, including one $15 million piece at 30 1/2 and another $15-20 million piece at 30 3/4. The company plans to have its restructuring plans in place by the end of June and the name has been trading up from the 24-26 range where it was last month.

It was dead quiet in the market, with just $2.3 billion in investment grade supply priced. Average deal size continues to trend down (just $314 million for the week) reflecting the fact that the calendar is dominated by smaller, off-the-run issuers. The sudden drop in supply reflects the reluctance of issuers to test the primary market in size during the current market turmoil. This is particularly true of the beleaguered telecom sector where Deutsche Telekom is waiting on the sidelines to launch a deal that will reportedly be in the EUR5-8 billion range. In investor presentations in Europe last week and the US this week DT has confirmed that the deal, when launched, will be split between dollars and euros but has made few other references to potential structure or confirmed timing, acknowledging that the market mindset is currently too distracted to ensure a successful reception.

WorldCom is the topic of conversation as market players speculate on how the company will treat its $2.65 billion, 364-day facility with term-out option. Many dealers believe that the company will draw down on the $2.65 billion, 364-day credit facility with term out option and then begin its negotiation process. The market for the paper rose last week to the 80s from the 60s-70s level as the market expects it will negotiate a $5 billion credit facility.