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Yorkshire Building Society, the third-largest thrift in the U.K. with more than GBP12.5 billion (USD17.8 billion) in assets, has entered a foreign exchange swap to convert into sterling USD350 million of a USD500 million bond deal it sold last month. Chris Parrish, group treasurer in Bradford, said the building society entered a swap with Royal Bank of Scotland Financial Markets to convert the bond into its base currency. Gordon Taylor, director of origination at RBOS in London, confirmed the bank acted as Yorkshire's counterparty.

When trading slowed down early last week a dealer craving for action put a price on his own head, literally. After proposing to shave his head for $1000, traders scrambled to find willing participants to back the deal. By mid-week the price had surged. "He's got a bid of $1500," said one trader, adding, "But, he'll come down." LMW could not confirm if the transaction was ever completed.

This chart, provided by Citibank/Salomon Smith Barney Inc., tracks bid-ask prices for par credit facilities for the week ending March 1 that trade in the secondary market. It also tracks facility amounts, ratings, pricing and maturities.

Home builder D.R. Horton received a $30 million add-on credit two weeks ago upon the completion of its merger with Schuler Homes, increasing the size of its new $775 million credit line to $805 million. The deal follows the company's refinancing of an existing $775 million, four-year revolver at the end of last month which was maturing this April. Bank participants on Schuler Homes' existing First Hawaiian Bank-led $300 million revolver offered the additional $30 million to D.R. Horton as part of an agreement whereby D.R. Horton paid down Schuler's existing line. The add-on credit, which will be used for working capital purposes, was contingent upon the closing of the merger deal, explained Sam Fuller, executive v.p. and cfo of D.R. Horton.

Allied Irish Bank priced notes two weeks ago to fund its latest $400 million collateralized loan obligation and is looking to become an active participant in the growing European and U.S. CLO market. The deal marks the third cash-flow arbitrage CDO completed by the bank, which has structured past deals with both leveraged loans and high-yield bonds as collateral. "We'll be back and back again in the CLO market," said Paul Carey, head of Corporate Banking New York for AIB, explaining that loan and bond CDOs are becoming a greater part of the firm's overall approach to the loan market. Carey said the bank is looking to do more CLOs in the future, including a U.S. denominated deal in the next year and additional Euro-denominated deals like the one the bank just closed.

Allied Waste Industries' debt climbed up last Thursday with traders estimating that a total of $10-20 million traded on the name. Among the trades, dealers said $2.5 million of the term loans "B" and "C" traded at 99 1/2, up from the 98 1/8 level two weeks ago as the market cast favorable eyes on the sector. Traders said $2.5 million of its term loan "A" traded at 97 3/4 in the street. "This market is feeling the impacts of the economy but not as much as manufacturing or other cyclical markets," said Marcy Odlaug, Fitch Ratings analyst.

AngloGold has secured lower pricing on its recently refinanced $600 million, three-year revolver due to stronger company performance and a globalization strategy. The new credit is priced at LIBOR plus 70 basis points compared to the 90 basis points spread on its former $350 million, three-year revolver, which was set to mature on Feb. 12. The globalization strategy, which has led the company to earn roughly half of its EBITDA outside of its South African base, has lowered its credit risk in the eyes of its lenders, said Jonathan Best, finance director of AngloGold. "Our plan has been to diversify away from purely deep mines in South Africa," he said, adding, "This is not an exit South Africa strategy but one to diversify geopolitical risk and mining risk in order to lower the cost of capital."

Bankers and analysts disagreed unanimously with comments made by former Enron ceoJeffrey Skilling last week. Skilling apportioned blame to the banks on the collapse of the energy company, and suggesting material adverse change clauses in loans should be prohibited for federally insured banks. Skilling, in front of a senate panel, said the company would have survived had many banks not invoked the MAC clauses in loan agreements.

The Official Committee Of Unsecured Creditors of Enron is trying to put the kibosh on a request by former Enron employees seeking the balance of severance packages not yet collected after the company filed for bankruptcy. The committee, which includes J.P Morgan, Citigroup, Bank of New York and Credit Suisse First Boston, claim the former employees of Enron are no longer entitled to their severance packages in response to a request for compensation made on behalf of the former employees by the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) on Feb. 14. Luc DesPins, counselor for the credit committee, did not return calls by press time.

Credit Suisse First Boston priced liabilities to fund Barclays Capital Asset Management's latest effort in the collateralized loan obligation market. The asset manager's latest $300 million CLO, Venture CLO 2002, is comprised of 90% senior secured leveraged loans and 10% high yield bonds and marketing of the notes was scheduled for the first week of February (LMW 2/4). The deal is now reportedly ready to close. Officials at Barclays did not return calls by press time. The Standard & Poor's $237 million triple-A rated tranche is priced at LIBOR plus 46 basis points; the $20 million single-A rated tranche is priced at LIBOR plus 155 basis points; the $13.25 million triple-B rated tranche priced at LIBOR plus 270 basis points. The investor on the remaining equity portion could not be determined by press time.

Bear Stearns has laid off at least nine analysts in its U.S. high-grade and high-yield research groups recently, according to firm officials. The layoffs come on the heels of reductions in European credit research (BW, 1/7).