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SunTrust Bank will launch syndication on May 2 for a $450 million refinancing for Dollar General, an operator of neighborhood stores across the U.S. The facility is split between a $300 million, three-year revolver and a $150 million, 364-day tranche. The new lines refinance existing bank facilities and maturing debt incurred from synthetic leases, said a banker.

Moody's Investors Service has downgraded Genuity from Baa2 to Ba1 following indications that Verizon Communications, fearing equity dilution, is less likely to recapture the company. The Federal Communications Commission required GTE to give up all but 10% of its Genuity ownership when it merged with Bell Atlantic in 2000 to create Verizon. The newly formed company was given the option to increase its ownership once it opened up its local networks to competition. Verizon expects to finish this task by the end of this year, but its management has stated that it would not reintegrate the company unless Genuity's financial position improves, explained Dennis Saputo, Moody's analyst. Genuity would warrant a deep-junk rating of B3 or lower standing alone, said Saputo, pointing to its significant operating losses and developmental stage.

Chris Rekow, an investment-grade telecom trader, has left Banc of America Securities in Charlotte to join UBS Warburg in Stamford, Conn. as a v.p. He will back up Mike Morris, the lead telecom trader on the desk, and report to Mike Meyer, head of investment-grade trading at UBSW, says a firm official. The official says the hire is part of an effort to beef up the trading desk. Over the last three months, the firm hired Eric Jayaweera andPaul Savini, a retail trader who came up through UBSW's training program. Meyer and Rekow could not be reached.

U.S. Xpress Enterprises opted for an asset-based loan from Fleet Capital after the terrorist attacks in September forced the company to abandon a SunTrust Bank-led term loan. Last fall the truckload carrier was looking for a $150 million term loan "B" and a $75 million revolver, but after Sept. 11 capital dried up, explained Ryan Rogers, director of investor relations for U.S. Xpress. Instead U.S. Xpress used the $100 million five-year senior secured loan and an equipment financing deal to refinance existing debt, he said.

Deutsche Bank has given the role of heading up investment-grade sales to Helen Doyle, a saleswoman on the desk, replacing former chief Tony Britton, according to a member of the firm's sales team. Doyle confirms that she now heads the group, but declined comment on why she replaced Britton. Brian Reid, newly promoted head of all credit sales, did not return calls. Britton was on vacation and could not be reached.

Roughly $15 million of Exide Technologies' bank debt traded up to the 69-70 level from 62-64 last Tuesday following the company's bankruptcy filing. The real driving force behind the trades was the timing of the filing and not the actual filing itself, which had been expected for months. Dealers explained that bank lenders would be entitled to collateral in certain foreign and U.S. subsidiaries if the company filed after April 12. The company's move to bankruptcy last Monday ensures banks will get that collateral, making the debt more attractive.

Franklin Templeton has made some personnel changes to respond to growth in its loan portfolio management area. Chauncey Lufkin, previously senior portfolio manager has been promoted to chief investment officer of Franklin's debt group and Richard D'Addario, previously senior v.p. and portfolio manager has taken Lufkin's spot as senior portfolio manager and director of research. Lufkin did not replace anyone. Both D'Addario and Lufkin report to Chuck Johnson, president. D'Addario said the debt group has been adding additional internal staffers from other areas to expand the fund's operations and investment groups. Calls to Lufkin were not returned by press time.

GoldenTree Financial is in the market ramping up one of the largest collateralized loan obligations the market has seen in the last six months as assets remain sparse for loan investors. Market sources said the manager is looking to reach a deal size as large as $650 million, despite the well-known challenge managers are facing in regard to competing for available new issue and finding good credits below par in the secondary market. Average deal size for cash flow arbitrage structures has been shrinking since last year to roughly $300-400 million. Officials at GoldenTree declined to provide any details.

Haverty Furniture Companies has refinanced its bank debt a year before it expired and extended its maturity to avoid violating its current assets versus liabilities covenant. The former $105 million, five-year revolver was set to mature in March 2003, appearing on the balance sheet as a short-term or current liability rather than as a long-term liability, explained Dennis Fink¸ executive v.p. and cfo. "When obligations become due in a year, they are looked at in a different way," he said. "For ratio purposes we didn't want it to show up as current." The company originally planned on the early refinance when it took out the facility in 1998.

Last week saw a firm tone through Thursday as the high-yield market absorbed two to three new issues per day without a hiccup. Bids were weaker in crossover retail names like JC Penney and Gap Inc. Here was selected other action:

Analysts and investors are divided as to whether there is still value in the auto sector. With rate hikes coming and varying credit problems at each of the big three, some analysts question the wisdom of being overweight the sector. "It is historically a good move once the Fed actually begins raising rates," says Vince Boberski, corporate bond strategist at RBC Dain Rauscher. That said, he believes it is still too early. He says bonds of Ford Motor Co., look like a good long-term value versus those of General Motors and Daimler-Chrysler, but that GM is the best short-term buy from a fundamental standpoint because of equity momentum, earnings and product lineup.

Craig Enright, a senior investment-grade corporate bond trader, has left buy-side firm Aegon USA Investment Management in Cedar Rapids, Iowa, to join GE Financial Assurance in Seattle. He reports jointly to Steve Devos in Seattle and Robert MacDougall in Stamford, Conn. They did not return calls, and Enright declined comment. He worked at Aegon for six years, and at the Chicago Board of Trade for 10 years prior to that. Mark Zinkula, head of corporate bond trading at Aegon, did not return calls.