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Sequa, a diversified manufacturing and technology company, has cancelled its $75 million revolver ahead of the October 2002 maturity and is now seeking a new facility. The J.P. Morgan-led credit was terminated because Sequa did not expect to be in compliance with certain financial covenants of the revolver, said Linda Kyriakou, spokeswoman for Sequa. Kyriakou declined to comment on the level of borrowings on the revolver at time of cancellation.

The Government of Singapore Investment Corporation (GIC), as part of its efforts to grow its global fixed-income team, is looking to hire an experienced corporate bond trader for its London office, according to an official familiar with the plans. The new hire will work with senior portfolio managers as well as credit and market analysts to develop analytical tools and give analysis on the primary and secondary fixed-income markets. GIC, which manages $100 billion, has offices in New York, Tokyo, Hong Kong, Beijing and San Francisco. Calls to Walter Schabel, head of the London office, were not returned.

Fitch Ratings has downgraded Williams Communications Group senior secured credit facility to CCC+ from B, with the rating on negative watch, spurred by sluggish demand for broadband services and depressed asset values securing the credit facility. The action also reflects concerns over the company's slower than anticipated revenue ramp-up, EBITDA generation and improvement in credit protection metrics. The rating watch is likely to be resolved pending the outcome of a bank group discussion over capital and covenant structure. A Williams' statement notes the downgrade is driven by current uncertainty surrounding the telecom industry.

Société Générale is planning a securitization of project finance loans, looking to join only Credit Suisse First Boston and Citibank as banks that have managed to execute project finance-backed collateralized loan obligations. The bank is looking to bring the deal to market within the next few months, according to Power Finance & Risk, an LMW sister publication. SocGen officials declined comment, so the geographical and sectoral mix of the loans could not be determined.

Toronto Dominion is said to be leading a $200 million credit backing Spectrum Equity's $345 million acquisition of Broadwing's Cincinnati Bell Directory business. Bankers at TD did not return calls and timing and pricing could not be determined. The company being formed by Spectrum for the directory business is called CBD Media. Calls to Randy Henderson, cfo of Spectrum in California, were not returned. Spectrum is the latest phone directories business dialing up the loan market, following the Yell Group's acquisition of McLeod USA's telephone directories business last month. CIBC World Markets is set to launch syndication of that credit (LMW, 1/21).

Tyco International and its lending subsidiary Tyco Capital/CIT Group drew down bank credit lines after exiting the commercial paper market to make the international conglomerate less susceptible to rumors in the financial markets. "The drawing down on the bank lines makes us [Tyco] less susceptible to various market rumors, including those that say we have liquidity issues, which if left to grow could become a self-fulfilling prophecy," said Dennis Kozlowski, Tyco's chairman and ceo in a conference call to reassure analysts.

Global Investment Advisors has closed a $1 billion synthetic collateralized debt obligation, marking the first managed synthetic deal the firm has done. David Ellis, managing director, explained the firm has done managed collateralized bond obligations in the past with cash flow arbitrage structures, but with recent volatility in the markets the firm opted for a synthetic transaction this time around. "With growth of credit default swaps it adds liquidity to markets where often there's very little efficiency on certain names." Ellis noted that the ramp up time is faster on synthetic names as well compared to shopping for particular assets.

Andrew McKnight left Goldman Sachs' distressed loan desk last week for Fir Tree Partners. Although McKnight could not be reached for comment, his new place of employment was confirmed by his voice-mail at the buyside firm. Last year, Goldman Sachs was rated number one for its distressed desk on LMW's Trading Desk Survey. Officials at both companies could not be reached by press time.

GTCR Golder Rauner last week ponied up an eye-popping 61/ 4% up-front fee to entice investors to join the credit backing its acquisition of TSI Telecommunication Services from Verizon Commuications. The expensive move, footed by the sponsor, put the deal over the top with investors who were reluctant to jump into the unfavorable telecommunications sector. Bankers expressed surprise at the size of the fee, but noted an uphill struggle was expected as lead bank Lehman Brothers was betting on a market improvement that would have helped its aggressive financing package.

Last week saw softness overall in the high-yield market. Junk desks even handled investment-grade names such as WorldComand Ford Motor Co.Here was other action.

ING Capital Advisors priced notes last week and is expected to close this week a collateralized loan obligation, Endurance CLO, taking over management of an existing Chase Manhattan deal. Michael Campbell, managing director at ING Capital, said Endurance is a migration deal, whereby ING has assumed management of a $300 million portfolio of assets that was once a Chase sponsored synthetic deal. The existing leveraged loan portfolio, referred to in the market as KVH, was structured by Chase in 1998 with multiple tranches of notes sold to investors. Chase held the loans on its balance sheet, but the risk of losses on the loans was held by investors. Campbell declined to comment on why management was changing hands and on investor profiles.

Lone Star Partners has tapped J.P. Morgan, Bank of Montreal and Wells Fargo Bank for the largest real estate subscription facility to date, according to LMW sister publication Real Estate Finance & Investment. The $1 billion facility will be used for the firm's $2.5 billion Lone Star Fund IV. The largest real estate subscription facility previous to this was an $800 million facility provided by J.P. Morgan to the Morgan Stanley Real Estate Fund IV International, which was completed last August. Calls to John Grayken, general managing partner of Lone Star, were referred to Owen Blicksilver, a spokesman, who declined to comment.