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Haverty Furniture Companies has refinanced its bank debt a year before it expired and extended its maturity to avoid violating its current assets versus liabilities covenant. The former $105 million, five-year revolver was set to mature in March 2003, appearing on the balance sheet as a short-term or current liability rather than as a long-term liability, explained Dennis Fink¸ executive v.p. and cfo. "When obligations become due in a year, they are looked at in a different way," he said. "For ratio purposes we didn't want it to show up as current." The company originally planned on the early refinance when it took out the facility in 1998.

Last week saw a firm tone through Thursday as the high-yield market absorbed two to three new issues per day without a hiccup. Bids were weaker in crossover retail names like JC Penney and Gap Inc. Here was selected other action:

Analysts and investors are divided as to whether there is still value in the auto sector. With rate hikes coming and varying credit problems at each of the big three, some analysts question the wisdom of being overweight the sector. "It is historically a good move once the Fed actually begins raising rates," says Vince Boberski, corporate bond strategist at RBC Dain Rauscher. That said, he believes it is still too early. He says bonds of Ford Motor Co., look like a good long-term value versus those of General Motors and Daimler-Chrysler, but that GM is the best short-term buy from a fundamental standpoint because of equity momentum, earnings and product lineup.

Craig Enright, a senior investment-grade corporate bond trader, has left buy-side firm Aegon USA Investment Management in Cedar Rapids, Iowa, to join GE Financial Assurance in Seattle. He reports jointly to Steve Devos in Seattle and Robert MacDougall in Stamford, Conn. They did not return calls, and Enright declined comment. He worked at Aegon for six years, and at the Chicago Board of Trade for 10 years prior to that. Mark Zinkula, head of corporate bond trading at Aegon, did not return calls.

American Express will to launch its first distressed debt fund on May 1, joining a wave of other investors seeking to take advantage of the growing opportunities in the distressed market, according to BW sister publication Loan Market Week. The fund currently stands at $52 million but will be open to investors for up to $250 million in assets under management. The new fund focuses on top positions in the capital structure with 80% of the portfolio dedicated to senior secured bank loans and bonds, according to John Engelen, the fund's senior portfolio manager. Engelen joined American Express in May 2001 to prepare the fund, after a stint running Salomon Smith Barney's global distressed effort.

American Express will launch its first distressed debt fund on May 1, joining a wave of other investors looking to take advantage of the growing opportunities in the distressed market. The fund currently stands at $52 million and will be open to investors with more than $250 million in assets under management. The new fund focuses on top positions in the capital structure with 80% of the portfolio dedicated to senior secured bank loans and bonds, according to John Engelen, the fund's senior portfolio manager. Engelen joined American Express in May 2001 to prepare the fund, after a stint running Salomon Smith Barney's global distressed effort.

A slew of highly leveraged financing packages are on the table for buyout firms, indicating the barbarians may be returning to the gate this summer. But market players are divided on whether all the deals will clear the market. J.P. Morgan and Morgan Stanley have proposed a 4.75 times debt to EBITDA offer for buyout firms looking to acquire Xerium from Apax Partners. This is hot on the heels of Deutsche Bank's offer of at least 5 times leverage for buyout firms looking at the Tyco plastics business. Similar pitches for Berry Plastics and Burger King are also said to be floating. "Leverage multiples are increasing, and it seems that institutions will be comfortable with levels approaching five times," said Rick Schnall, a partner at buyout firm Clayton, Dubilier & Rice.

Bear Stearns and CIBC World Markets have landed the lead roles for a $540 million high-yield debt package for Willis Stein & Partners, backing the purchase of Roundy's, a food wholesale and retail company. The leads will go to Roundy's existing lenders in Milwaukee on Monday, said one banker, and the institutional launch will be in mid-May.

Kirk Hartman has joined Wells Capital Management in the new position of director of portfolio management, where he will oversee all the portfolio managers of the firm's more than $110 billion in equity and fixed-income assets--including some $70 billion in fixed-income. He will report to Robert Bissell, the firm's president.

J.P. Morgan and Credit Suisse First Boston launched syndication of a $1.5 billion asset-based refinancing for J.C. Penney & Co. last Tuesday, pitching yet another asset-based deal into the market. Pricing on the three-year BBB-/Ba2 credit is LIBOR plus 13/ 4%, while there is a 1/2% commitment fee. The credit refinances a $1.5 billion unsecured revolver. Asset-based lending has seen a huge rise in the last year as banks seek more security and cash-flow projections remain uncertain, said one banker. Investors also need to put cash to work and there has been a shortage of leveraged loan deals.

Lehman Brothers' $495 million six-year "B" loan for Corrections Corporation of America has already been twice oversubscribed, with commitment offers still coming in at press time. Strong reverse inquiry from incumbent investors helped the deal get off to a rapid start, said one banker. The total refinancing package is $845 million, comprising $695 million in bank debt and $150 million in senior notes. Deutsche Bank, UBS Warburg and Société Générale are co-agents on the loan, which carries a B+/B1 rating.

As it breaks into the secondary market after an extended stay in syndication, the $1.2 billion JohnsonDiversey credit has been assigned a Ba3 rating by Moody's Investors Service and a BB rating by Fitch Ratings. Led by Goldman Sachs and Citibank, the credit backs the acquisition of Unilever's commercial cleaning business by S.C. Johnson Commercial Markets. The combined company will have to carry leverage of between 5.5 to 6 times as well as dealing with a substantial scope of integration risk, according to Russell Gorman, v.p., senior analyst at Moody's. The new management will need to combine teams in fifty plus countries, and integrate a $1.5 billion acquired company with a $1 billion purchasing company, he added. "This is not a snap-on acquisition," he said. Heavy spending rates in research and development will further constrain the ratings.