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Anglian Water Services is set to continue its plans for a debt restructuring programme after issuing a new set of proposals this week to meet existing bondholder approval. To try to ensure bondholder approval necessary for the £3.4bn restructuring, parent company AWG has added a 37.5bp coupon uplift and enhanced the credit wrap for two of its existing bonds. The proposals have added an extra £7.5m to the £120m cost of the deal for Anglian shareholders.

WorldCom is working with its bank group to amend the financing arrangements on a $2.65 billion, 364-day revolver as the market for the credit sunk to the 60-70s level from the 80-85 range two weeks ago. The credit, led by J.P. Morgan and Bank of America, is part of a deal that includes a $3.75 billion, mutli-year revolver and both facilities mature in June. The credit agreement allows the company to term out the 364-day facility and investors are worried that after the $3.75 billion line matures next month, the company will draw down and term-out the $2.65 billion facility. Dealers said that the company does not need cash at this time, but rather the liquidity associated with having the credit available. Both revolvers are currently unfunded.

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 2 1/2%. 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.

Credit Suisse First Boston and Lehman Brothers are set to launch syndication of a $200 million refinancing for Mobile Storage Group tomorrow. The loan, which consists of a $60 million, five-year revolver and a $140 million, seven-year "B" is priced at LIBOR plus 2 1/2% and LIBOR plus 3%, respectively. There is also a 50 basis points commitment fee on the revolver. CSFB is the administration agent and Lehman is the syndication agent on the loan. Union Bank of California is the documentation agent. Expected ratings on the debt are Ba3/BB. Calls to company and bank officials were not returned.

Lehman Brothers allocated the $565 million "B" loan for Corrections Corporation of America on Tuesday, after upsizing the tranche and trimming the spread. The "B" was originally $495 million and priced at LIBOR plus 4%, but after massive oversubscription from investors, $70 million was added and pricing was slashed 1/2%. The "A" term loan was downsized $50 million from $125 million to $75 million, while the revolver stayed at $75 million. A banker said bids in the secondary are above par, but exact levels could not be confirmed. Pricing on the four-year pro rata is grid-based, also at LIBOR plus 3 1/2%. Deutsche Bank, UBS Warburg and SociŽtŽ GŽnŽrale signed on for the pro rata, said the banker.

UBS Warburg and Morgan Stanley's credit for Rail America Transportation will be allocated at the end of next week, after the seven-year, $375 million term loan "B" was heavily oversubscribed. Pricing, currently at LIBOR plus 2 3/4%, has not yet been flexed, but one banker said it is still a possibility. The banks have not closed the deal because the issuer wants to create some subsidiary level debt in Canada and Australia, he added. The six-year, $100 million revolver is priced at LIBOR plus 2 1/4%. The deal was sure to be a lay-up, the banker noted, since the company is a repeat issuer, and the market is "smoking hot."

Institutional players offered more than $1billion for Silgan Holdings' $300 million "B" loan before the bank meeting was even held last Thursday. Deutsche Bank, Bank of America, Morgan Stanley and Citibank all have roles on the $800 million bank debt, which also comprises a $400 million, six-year revolver and a $100 million "A" term loan, said a banker. Silgan is looking to refinance to take advantage of the current investor enthusiasm for the paper, said Harley Rankin Jr., executive v.p. and cfo of Silgan. The $300 million "B" is still being shopped and the LIBOR plus 2 1/2% pricing is unchanged, the banker noted. The pro rata is priced at LIBOR plus 2%.

Investors are fretting over WorldCom as $20 million of its $3.75 billion, multi-year revolver traded in the 93 context. Traders said that $10 million of the name failed to auction in the 97 range earlier on Wednesday. The $2.65 billion, 364-day facility with term-out option was bid in the 60-70s range, although no trades were reported. Both revolvers are unfunded, but market players drove down the bids with the speculation that the company might term-out its 364-day facility. Calls to Scott Sullivan, company cfo, were referred to a spokesperson who did not return calls by press time.

About $25 million of Adelphia Communications' Century Cable term loan traded at 91 1/2 in retail this week with a $2.5 million trade in the street this 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 last week. 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.

A Japanese bank is believed to have auctioned a $50 million piece of Warnaco Group at 30 today 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 last week. 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.

The proliferation of the derivatives market, especially in credit derivatives, has made regulation increasingly important and difficult. Pauline Loong asks regulators in the region's two most active markets to explain their approach – and discuss their fears.