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Dublin-based Goodbody Stockbrokers, the brokerage arm of the AIB Group, is looking to hire a salesperson. Neil Carroll, head of bonds and derivatives products, says the firm wants to grow its product line and client base and will require a new salesperson to do so. Currently, the firm concentrates mainly on government bonds, but wants to expand into credit. Ultimately, Carroll expects to hire credit traders and analysts as well, but the firm will not be pursuing that avenue immediately.

Citibank and Goldman Sachs will launch the eagerly anticipated bank deal for SC Johnson Wax Professional on Feb. 6, and as predicted the pro rata has been trimmed down from $800 million to $550 million. The leads were initially looking at a $400 million revolver and $400 million "A" term loan, but bankers said in the current market, this was ambitious (LMW, 1/21). Citibank and Goldman bankers did not return calls, while Johnson Wax policy is not to comment, according to an official at the company. The new structure could not be ascertained by press time, but a banker said the $500 million institutional tranche has been upped. One banker said, with only about 10 banks interested in the pro rata market right now, the $800 million was always going to be tough. But with LIBOR rates at under 2%, the company is still getting cheap money from the institutional market, he added.

The $2 billion debtor-in-possession facility for Kmart will likely include an institutional tranche, satisfying buyside demand for paper and deepening the prospective pool of capital, bankers said. Price talk on the DIP, led by J.P. Morgan and Fleet Securities, is in the LIBOR plus 31/ 2% range. Credit Suisse First Boston and General Electric Capital will act as collateral monitors, documentation agents and syndication agents on the credit with the two leads. The spokespersons and officials for the banks either did not return calls or declined all comment on Kmart.

The Loan Syndications and Trading Association elected its 2002 board of directors, including Linda Bammann, chief risk officer of BANK ONE, to the position of board chair. Bammann replaces Mike McAdams, who is president and cio of Four Corners Capital Management and will continue on as vice chair of the board. In addition to Bamman, Bob Hevner, managing director and syndication manager at Deutsche Bank was elected treasurer for 2002. Also joining the board for the first time are Glenn Stewart, managing director for syndications at Bank of America and Jon Calder, managing director for sales and trading for Citibank. "The members of our Board of Directors bring experience, leadership and industry knowledge that drive the development of the loan market and the growth of the LSTA," said Allison Taylor, executive director of the LSTA.

BNP Paribas' bank deal for Navis Partners, backing the acquisition of MACTEC from CHB Capital Partners, hit the street running. A banker said some accounts committed to the $140 million, seven-year "B" tranche before the Jan. 18 launch and the "B" tranche is on its way to filling up. The deal also comprises a five-year, $35 million revolver. Pricing is LIBOR plus 4 1/4 % on the term loan "B" and LIBOR plus 33/ 4% on the revolver.

Stephen Penwell, Morgan Stanley's global head of credit research, has been promoted to the new position of head of North American credit sales. He will oversee sales for the firm's investment-grade, high-yield and bank loan businesses. Penwell says it is yet to be determined whether he will continue in his capacity as global head of research, or whether a new global head will be appointed. He says the move is the latest stage in a year-long effort to streamline the organizational structure of the firm's credit business. Last year, Morgan Stanley integrated its high-yield, bank loans, emerging markets and several of its structured product businesses. It also united high-yield and investment-grade research and trading (BW, 8/19).

ORIX Capital Markets (OCM) is looking to hire eight senior fixed-income credit analysts over the next two months to join its 20-person corporate finance group, which invests chiefly in below investment-grade and Latin American debt. The corporate finance group will also move from Baltimore to join its commercial mortgage securities investing and servicing team at its 270-person Dallas headquarters in March, according to Sheppard Davis, head of the group. OCM has built a new trading floor in Dallas to accommodate the group. Davis would not specify total taxable fixed-income assets under management, though he says it is in the "multiple billions" of dollars.

Adelphia Communications' bank debt ticked up from 99 3/8 to 99 7/8 in response to an upgrade from Moody's Investors Service, while competitor Charter Communications traded off a bit at 98 7/8. A market player said that Charter, usually a neck and neck competitor with Adelphia, may have traded down slightly as its ratings remained at Ba3, a notch below Adelphia. Other traders suggested portfolios thick with Charter might have traded out for a piece of its competitor. One source said roughly $2.5 million of Adelphia changed hands midweek with an institutional account as the buyer. Calls to officials at the companies were not returned by press time.

Ultimate Electronics received an additional $25 million in financing from PNC Bank through an amendment to its Wells Fargo-led $50 million credit line that closed last September as the company needed more funding to support company growth and Wells Fargo would only extend an additional $5 million to the company. PNC was brought in to pick up $25 million in the recent adjustment. "I believe because of Sept. 11, it was a little difficult to get all of it at the end of September," said Alan Kessock, cfo of Ultimate, explaining that the company sought $80 million from Wells Fargo in the beginning of September, but had to raise the loan incrementally due to market conditions. Kessock speculated Wells no longer wanted additional exposure to the company after September.

The Russian corporate bond pipeline is beginning to grow and London-based emerging market debt bankers estimate there are up to 20 companies looking to do deals. "Russia is where the action is going to be," says Jan Mutsaers, head of debt capital markets for emerging Europe at ING Barings in London. Mutsaers says ING bankers will be pitching innovative structures in Russia to help lower-rated companies get deals done. Another emerging Europe banker says more Russian blue-chip companies need to come to market before it opens up to the second-tier. Companies such as Gazprom, Tyumen Oil, Sibneft and Vimplecom--a mobile phone services company--are likely to be the first out of the gate, he adds.

Analysts are recommending that investors protect themselves from possible ratings downgrades in the European telco sector by shifting into step-up coupon bonds. Rick Deutsch, head of European high-grade credit research at BNP Paribas in London, recommends that investors in France Telecom (Baa1/BBB+) and Deutsche Telekom (A3/A-) switch to step-up issues. Both companies are under ratings pressure and Deutsch says that even though 35 to 50 basis points spreads between step-up bonds and plain vanilla bonds are wide, the market tends to undervalue step-ups. Depending on investors' credit view, the step-ups offer value, he argues.