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Putnam Investments has begun a search for a credit analyst to support its high-yield collateralized debt obligation research effort, says Steve Peacher, cio with the Boston-based asset management firm. Peacher says the new hire would work on a day-to-day basis with Neil Reiner, high-yield portfolio manager, although he would report directly to Paul Quitsberg, senior v.p. and head of research.

RCN, the fiber optic services company locked out of the capital markets for the foreseeable future, has struck a deal with its lender group that increases the interest spread on the bank debt and also reduces the overall lending commitment. "RCN will pay down $187.5 million on its term loan, with cash on hand, and will reduce the size of the pro rata," said Kevin Kuryla, director of investor relations. Interest rates will go up to around 6 1/2% to 7% all-in, but that is still comparatively cheap, he added. RCN has been pressured by competition from incumbent digital subscriber line and cable modem providers. In the past year, competitors have been more aggressive in their offerings of high-speed data services, the growth driver under RCN's competitive business model. Two weeks ago RCN's bank debt jumped nearly 10 points in about $30 million in trades as the market started to buzz about an imminent paydown (LMW, 3/25).

Société Générale has filled the bank deal for the Pittsburgh Penguins of the National Hockey League and launched the National Basketball Association's Charlotte Hornets credit last Wednesday in New Orleans. The Hornets transaction is a $75 million refinancing that has been funded but not yet syndicated. The deal partially backs the proposed move to New Orleans, following a request to the NBA to relocate the franchise. A response is expected from the league in early April.

CIBC World Markets and Deutsche Bank's $278 million credit for Trans-Elect, backing the acquisition of The Michigan Electric Transmission Company was well oversubscribed only hours after launch last Wednesday. The loan is split into a $200 million "B" tranche at the operating company level, a $25 million revolver, and the remainder is an up to $53 million loan at the holding company level. Pricing on the "B" and revolver is LIBOR plus 23/ 4%, while the holding company loan is priced at LIBOR plus 33/ 4%. "The holding company loan is structurally subordinated to the opco loan," said a banker, explaining the differential. A flex has not been decided on yet, he added.

Triton PCS has added a $125 million term loan to an existing $355 million credit in an effort to achieve better short-term liquidity. "It makes good sense to have that liquidity," said Daniel Hopkins, senior v.p. of finance and treasurer for Triton. The new deal also eases the company's amortization schedule for the next five years.

J.P. Morgan Securities has hired Greg Boester as an adjustable rate mortgage securities (ARMS) trader. He fills a newly created slot in the firm's residential mortgage-backed securities trading operation. He will trade the non-agency, or whole loan, ARMS sector, says division chief Kevin Finnerty. Boester joins from Lehman Brothers. He is the second ARMS trader hired away from Lehman by JPM in the last several weeks, joining former colleague John Horner (BW, 3/3), who trades the 15-year and agency ARMS sectors. Boester is a v.p. and will jointly report to pass-through trading chief Bill King and ARMS trading boss Tom Wiles.

Katonah Capital Management is wrapping up a roughly $425 million collateralized loan obligation after Credit Suisse First Boston issued notes to support the structure two weeks ago. Originally the deal reportedly started ramping up back in May (LMW 5/28). The reason for the long ramp up period could not be determined by press time. Joyce DeLucca, portfolio manager, did not return calls by press time. The deal is comprised of leveraged loan assets and reportedly a small percentage of bonds. CSFB priced the notes at LIBOR plus 44 basis points for the Standard & Poor's rated triple-A tranche and LIBOR plus 240 basis points for the triple-B tranche, according to a banker close to the deal.

CIBC World Markets this week is launching syndication of a $500 million credit for Isle Of Capri Casinos into a market warming to the gaming sector after it sustained the worst that could be thrown at it. "There is positive demand for gaming paper right now, with the overall economy improving and the regional (non-Vegas) companies not adversely affected by Sept. 11," stated Rex Yeisley, senior v.p. and cfo of Isle of Capri. Boyd Gaming is also set to refinance this summer after a $200 million bond offering last week and other bank deals for gaming companies are said to be in the works.

An American Institute of Certified Public Accountants project that changes the way banks account for loans picked up via acquisitions has finally been completed, but it has some lawyers and accountants fearing the industry will be blindsided because most have forgotten about the long-running effort. Corporate Financing Week, and LMW sister publication, reports that the project has been on the table since 1998 and with ongoing consolidation in the industry it could have big impact, they said. The change would require banks to disclose expected cash flows from loans, meaning those without the allowances for possible bad loans that won't get paid back-potentially creating a less flattering picture to project to directors and shareholders before an acquisition.

The low price of an outstanding issue by Panavision explains the unusual structure of a proposed new $250 million bond deal by the company, according to an official familiar with the deal. The proposed issue would give bondholders a second lien on collateral that is part of the deal--a higher degree of security than is typical in media sector issues, one media analyst says. However, higher security was needed because a deal comparable in structure to the outstanding issue would require a coupon of well over 20%, since that is where the outstanding issue was trading last week. Several high-yield desks did not have trading levels for the camera maker's single outstanding high-yield issue, its 9.625% senior discount notes of '06 (Caa1/B-), but one sell-side desk quoted the bonds at 40 last Tuesday. High-yield officials offer several explanations for the low price, including the company's high leverage (5.5-6 times debt-to-cash flow), the bonds' poor position in the capital structure given the amount of bank debt outstanding, and concerns that competition from digital technology will reduce cash flow.

Marconi is poised to proceed with a debt-for-equity swap in a move to restructure its balance sheet, London-based telecom analysts say. The move would involve bondholders eventually swapping their debt for shares. The increased likelihood of the swap comes after Moody's Investors Service downgraded Marconi's debt from B2 to Ca last week. "We've been very negative on this situation since last year and it is clear some sort of restructuring will take place, most likely a debt-for-equity swap," says Aizaz Shaikh, a telecom analyst at BNP Paribas.