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The Mexican government's decision to impose a 20% value added tax onto high frustose corn syrup, a key market for Corn Products International, prompted Moody's Investors Service to put the company's senior unsecured debt rating of Baa3 under review for a possible downgrade. Weaker operating performance, added leveraged, and the instability in Argentina--a key market for the company-- are also factors in the review. "It hasn't been a great time if you are a producer of high fructose corn syrup," saidPeter Abdill, analyst at Moody's, noting over capacity in the industry, high net corn costs, and high energy costs as other negatives. On a positive note, contracts with beverage companies might increase the price of high frustose corn syrup, which could boost demand. "Will it be enough to offset issues in Latin America and corporate performance?" It's still a tough question according to Abdill.

Lehman Brothers executed a reverse flex on the $270 million term loan "B" for Regal Cinemas after more than 60 accounts committed over $1 billion to the deal. A banker said, after overwhelming investor response the spread on the "B" was cut 1/2% from LIBOR plus 4% to LIBOR plus 31/ 2%. The $100 million revolver is still being syndicated, he added, and is still priced at LIBOR plus 31/ 4%. The financing backs Regal's exit from bankruptcy, and a potential revival for a once shunned and troubled sector (LMW, 1/14).

The Loan Syndications and Trading Association last week released two new "second generation" guidelines to refine the standard assignment documentation it set forth last year. One important change is a provision that now states that an agent must consent to transfers of revolving loans to anyone other than a lender already in the revolver. In addition, there has been a change to "first generation" documentation, which said if a borrower did not consent to a trade within five business days then he would be deemed to have consented.

Conversely, pricing on Lehman Brothers' credit for TSI Telecommunication Services has been flexed 1/4% across the board, highlighting a market that can still be tough to some new issuance. Despite optimism based on the market being back to pre-Sept. 11 levels and a number of credits filling quickly, other bankers believe the paucity of new issuance is papering over a more cautious and reticent investor base. Pricing is now LIBOR plus 33/ 4% on the pro rata and LIBOR plus 41/ 4% on the "B" term loan. Call protection has been added at 102/101, a banker added.

Applica, a manufacturer of small electronic consumer goods, worked with lead lender Bank of America to secure a $205 million asset-based credit facility for the company in order to score attractive pricing in a tougher economy. Adam Kaplan, treasurer, explained that looking ahead the company knew the softer economy would result in a tougher sell for a cash-flow deal. "We knew covenants would be stepping up and so would pricing," he said. He expects asset-based lending to become more mainstream as leveraging cash flow is more pricey than leveraging assets.

Roughly $50 million of Xerox's bank debt traded last week as the paper changed hands in a series of small trades. The debt's level did not change from its 92-93 levels reported last week as dealers noted that activity in the name is a function of liquidity rather than news or expectations on the company. with roughly reportedly exchanging hands. No buyers and sellers could be identified.

Barry Bobrow, previously head of syndicated finance for Banc of America Securities in London, has returned to the U.S. as a managing director on the loan syndication desk in Charlotte working in the asset-based lending group. He will report to Glenn Stewart, head of the loan syndication desk. A B of A spokeswoman said the newly created position is part of a commitment to expand in the sector, though she could not provide comment on the current or expected size of the group. She said he returned to the U.S. after a 16-month stint in London and will work to broaden and deepen relationships with investors. Bobrow was replaced in London by Parker Knight.

CIBC World Markets appears to be set to lead a transatlantic credit for Yell Group, a portfolio company for London-based Apax Partners and Dallas-based Hicks, Muse, Tate & Furst, backing the acquisition bid for McLeod USA's telephone directories business. A banker said the potential loan would likely be an add-on to the $1.5 billion credit, denominated in Sterling launched last summer, led by CIBC, Merrill Lynch and Deutsche Bank. The amount of the loan and timing for syndication could not be determined, and CIBC officials referred all comment to bankers in London, who did not return calls. Yell's bid for the McLeod business is said to be between $550 million and $600 million. A spokeswoman for Apax declined comment and a spokesman for Hicks, Muse did not return calls.

CIBC World Markets is shuffling responsibilities among its existing loan group following the Jan. 11 resignation of corporate lending co-headFrank Brittan.Richard Hassard, co-head of CIBC's credit capital markets arm and Brittan's ex-boss, confirmed Brittan's resignation and said it was for personal reasons, stressing that Brittan was not let go by the firm. Hassard noted that a decision on whether to replace Brittan has not been made. Brittan was responsible for lending within the capital market division. As of last week he had not joined another firm.

J.P. Morgan and Deutsche Bank are scheduled to launch tomorrow syndication of the $2.005 billion loan backing Adolph Coors' acquisition of the Carling business of Bass Brewers from Belgium-based Interbrew. The Denver-based bank meeting will include a tour of the Coors brewery as a warm up, sources said.

The $75 million "B' term loan of theCredit Suisse First Boston and J.P. Morgan-led credit for Aftermarket Technology Corp. blew out last week, days after launch. The credit was launched last Monday and was two times oversubscribed by Wednesday, said a banker. He attributed the reception to a healthy market hungry for new issue and the good ratings. No changes have yet been made to the structure or pricing as a result of the blowout, said the banker. The pro rata tranches are still being worked on.

Bank One, Barclays Capital, Union Bank of California, Bank of New York and ABN AMRO have signed on as co-documentation agents on the $2.1 billion loan backing Northwest Natural Gas' purchase of Portland General Electric. Each bank has committed $200 million. The credit, led by Merrill Lynch and Credit Suisse First Boston, was pitched last week to managing agents and $100 million pieces are being offered, said a banker. The credit consists of a $100 million, six-year revolver and a $300 million six-year "A" term loan, both priced at LIBOR plus 2 3/4 %. A $500 million seven-and-a-half year term loan "B" is priced at LIBOR plus 3 1/4 % and a $300 million term loan "C" at LIBOR plus 3 1/2 %. The "B" and "C" loans will come to market in the second quarter, the banker said.