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About $25 million of Adelphia Communications' Century Cable term loan traded at 91 1/2 in retail last week with a $2.5 million trade in the street last Thursday. The credit was rumored to have traded in the high 80s, although most dealers quoted the name in the 90-92 context. The name had been trading in the 93-94 range two weeks ago. A $25 million piece of Adelphia's Hilton Head facility was also believed to have changed hands at around 86. Investors are beginning to trade some of the name's more off-the-run facilities as they gamble on the value of the company's cable assets.

The value of fast-food company AFC Enterprises would be retained even in a bankruptcy scenario because the assets can be used for other purposes or by competitors, leading the bank loan rating to be the same as the corporate rating. Standard & Poor's has assigned a BB rating to the $275 million bank loan, launched into the market on April 26 byCredit Suisse First Boston and J.P Morgan. Jerry Hirschberg, an S&P analyst explained, "Those boxes AFC operates in are not singular in use. Unlike for example, Home Depot." Moody's Investors Service has rated the loan Ba2.

Roughly $15-20 million of Pinnacle Holdings was offered at 99 last week following news of the prepackaged bankruptcy plan. Traders quoted the market for the name in the 96-97 context two weeks ago. One dealer explained that as the name ticks closer to par many hedge funds that had bought in at levels close to 85 did not want to wait until as the name ticked closer to par. No trades were confirmed. "The paper should find a home based on what we know," said the dealer, referring to the strength of the plan.

A Japanese bank is rumored to have auctioned off as much as $140 million of Warnaco Group bank debt at 30-311/ 4 last Thursday as the company continues to work through its Chapter 11 reorganization plan. The name had been moving at 30 earlier in the week and had been quoted in the 24-26 range two weeks ago. The company is expected to file its reorganization plan soon. Reports indicated that Bear Stearns is helping Warnaco explore the sale of some of its core businesses, which include Calvin Klein Jeans. Warnaco licenses the right to make clothing under brands such as Calvin Klein, Warners, Speedo and Oscar de la Renta.

Bank of America and Deutsche Bank are preparing the launch of a $340 million exit financing for Pinnacle Holdings that will include a $300 million amortizing "B" piece. A banker said Pinnacle should emerge from bankruptcy in July and the loan will emerge concurrent with the company's exit. Pricing and terms on the bank debt, which also comprises a $40 million revolver, have not been finalized.

Bank of America is aggressively hiring for its London-based European fixed-income sales and trading efforts. Peter Plaut, head of European credit research, says the firm is looking to build its investment-grade and high-yield desks, but did not give a specific number of hires to be made. The firm has had a presence in the U.K. for two years and is looking to expand its headcount in response to business growth, he adds. Industry officials say B of A is also looking to ramp up its asset-backed securitization team. Calls to Arrington Mixon, head of European fixed income, and Steve Gandy, head of European ABS, were not returned.

CIBC World Markets' $500 million refinancing for Boyd Gaming, which will be launched into the market this month, is demonstrating the latest pricing trend in the loan market with the pro rata and "B" loan offering the same spread. A banker said the $100 million "B" loan and $400 million revolver are both priced at LIBOR plus 21/ 2%. Having the "B" spread the same as on the pro rata is being seen increasingly, said a banker, with some 15 deals so far this year following that form. Five "B" deals have set pricing below that of the pro rata, she said.

FPL Energy's long-awaited $2-2.5 billion construction revolver is in flux because co-lead arranger Citibank has reportedly declined to fully underwrite the credit. Fellow co-lead Bank of Nova Scotia is still working with the Juno, Fla.-based independent power producer, says a Scotia banker, declining further comment. A Citi official declined all comment and calls to FPL were not returned by press time, but project finance bankers say Citi is now effectively off the deal, according to Power Finance & Risk, an LMW sister publication.

Covanta Energy has received interim approval for its Deutsche Bank and Bank of America-led $290 million debtor-in-possession financing after its sports ventures and maturing debentures caused the company to file for Chapter 11 bankruptcy last month. The DIP facility is a 12-month facility including a $242 million tranche that incorporates existing letters of credit. The remaining $48 million tranche includes $34 million for cash withdrawals and $14 million for new letters of credit. Bob Shapard, company executive v.p. and cfo, declined to disclose pricing on the deal.

WorldCom excepted, the high-yield market was flat to slightly improved overall. Issuance continued to be solid, with two or -three European deals performing well (see story, page 1). Canadian telco Call-Net Enterprises' 10.625% notes were a big loser, dropping 20 points on poor numbers. Here was other selected action.

HSBC Securities has lost at least $45 million in its U.S. corporate bond desk trading operations, largely in telecom and Tyco International bonds, say fixed-income officials with knowledge of the situation. This hit, coming after a $15 million loss on the firm's U.S. Treasury desk and feeble bonus payouts for 2001, framed a dire picture for 2002 compensation and has prompted an exodus of senior staff of the corporate bond group over the past several weeks. There are just two people left on the capital markets origination desk, one of which is an associate. The decline in bonuses was particularly disappointing, say the officials, noting that expectations had been raised after the corporate desk turned an estimated $20 million profit in 2001.