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The Blackstone Group is looking to build a group focused on launching collateralized loan obligations. Dean Criares, hired by the private firm last week to head up the effort, said he will be looking to hire four to five people this year to round out the team. Criares said he has not hired anyone yet, but remarked, "I have new resumes in front of me." He said he will first focus on finding talent with an industry/credit focus and then he will look to hire someone in a trading capacity. Criares said the firm is building the team with plans of raising a series of vehicles, but he declined any specific comment on the size of the products or a timeframe for launch.

BNP Paribas and Lehman Brothers within the next few weeks will launch syndication of a $400 million loan backing CSG Systems International's acquisition of the billing and customer care assets of Lucent Technologies.Peter Kalan, cfo and v.p. of finance, said CSG has fully committed bank funding and the credit lines should carry spreads of between 2-3% over LIBOR. It could not be ascertained whether the banks bid for the business or if the loan is fully underwritten. Officials at both banks did not return calls.

BNP Paribas has hired Caitlin Kelly as v.p. asset-backed securities origination. Kelly, who joins from Banc One Capital Markets, reports to Sean Reddington, director and group head asset securitization in New York. At BNP Paribas, she will be in charge of all fronts of asset-backed origination, from conduits to term ABS, which include credit card or auto ABS transactions. Reddington says the position was created due to the expansion of the bank's securitization business. He declined to indicate whether he would be hiring more ABS bankers in the near future

CIBC World Markets has hired Mike Senft as a managing director in its corporate and leverage finance group. Senft, who joins from Merrill Lynch, reports to Bruce Spohler and Ed Levy, managing directors who both head the corporate leveraged finance group for the U.S. out of New York. Senft says he will be responsible for originating leveraged loans and high-yield bonds for middle market companies and financial sponsors. Middle markets companies are mid-size companies with less than $1.5 billion in equity and financial sponsors are the financial companies that sponsor leveraged-buyouts. The position is newly created, says Senft, who adds that CIBC hired him to specifically build up the bank's effort in the middle market segment of the leveraged finance market. CIBC will selectively add more bankers in this department, but Senft declined to specify how many.

CIBC World Markets and Deutsche Bank have landed lead roles on an upcoming $290 million credit backing Trans-Elect's acquisition of The Michigan Electric Transmission Company and have done so because of early bird interest in the transmission business and a strong relationship with the company treasurer. "Both the CIBC and Deutsche Bank teams have long-standing relationships with me," stated Martin Walicki, senior v.p., finance and treasurer for Trans-Elect. The target is a subsidiary of Dearborn, Mich.-based CMS Energy.

Columbus McKinnon is negotiating a new credit facility with FleetBoston Financial, its existing lead bank, after violating covenants on the current $225 million facility. "We were planning to refinance anyway," said Robert Montgomery, executive v.p. and cfo of Columbus, an Amherst, N.Y.-based manufacturer of handling, lifting and positioning products. "The current agreement expires in March 2003 and we wanted a new one in advance of that." Officials at Fleet did not return calls.

ABN Amro and Société Générale have done away with their dedicated European high-yield desks. Spokespeople at both firms say the desks have been integrated into other areas of their fixed-income businesses and emphasized that their firms were not out of the high-yield business.

Optimism is growing that AMF Bowling Worldwide will emerge from Chapter 11 proceedings shortly, with a confirmation hearing now set for Feb. 1. "AMF is well on the way to emerging from Chapter 11," said Mike Anderson, an AMF spokesman, though he declined to provide a specific date since the confirmation is the last stop in a process that can take up to two months. He confirmed Deutsche Bank is providing a $350 million exit facility, comprising a $50 million revolver, a $100 million term loan "A" and a $200 million term loan "B" to support the exit, but declined to discuss why AMF chose Deutsche Bank.

CIBC World Markets has hired Mickey Spillane as an executive director to work on its high-yield trading desk. He reports to Scott Fahey, managing director and head of high-yield and distressed bank loan sales and trading. Spillane will trade credits in a number of sectors, including media, technology, energy and chemicals.

Morgan Stanley reportedly bought GBP500 million (USD711 million, notional) sterling puts/dollar calls for a customer speculating that the sterling would continue its slide against the dollar, according to options traders in New York. Morgan Stanley officials declined to comment.

Hong Kong Market sentiment for Hysan Development continued to develop this week, as the corporate prepared to launch a debut $200m 10 year bond issue. The Baa1/BBB+ rated property rental corporate has awarded Merrill Lynch and Morgan Stanley the mandate to joint lead manage the Eurodollar bond issue. Pricing talk for the transaction is 185bp over US Treasuries.

Australia UBS Warburg followed its strong start to the year - the blockbuster Westfield America placement - with another deal on Friday last week. The bank arranged the sale of a block of Normandy Mining, when AngloGold sold a 7% stake in Normandy following its failure to acquire the company.