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Linda Patterson, portfolio manager of Austin, Texas-based Patterson & Associates, says her firm will place $250 million in new cash she expects to receive into short-term agency debentures in anticipation of a Federal Reserve rate cut in two weeks. Patterson says the firm's clients are government entities that are now collecting their tax money, which is why she expects the cash infusion. She reasons that she will place the cash into agency debentures instead of Treasuries--the only two asset classes in which the firm invests--because she believes Treasuries are overvalued versus agencies. She notes that agencies are currently yielding 23 basis points more than Treasuries on two-year and shorter maturities.

Wyndham International's bank debt got a slight boost last week in anticipation of amendments that were finalized Thursday. The "B" paper traded up to the 87 range, while the increasing-rate loan traded in the 85 range. This is up from prior levels of the low 80s. Volume was estimated around $15 million. Calls to the company were referred to Andrew Jordan, spokesman, who confirmed that the company had a meeting with the bank syndicate on Thursday. He declined to comment further.

Enron Credit's London-based head of syndication has left the company and will soon be landing at CIBC World Markets. Rabin Barker-Bennett will join CIBC's debt capital markets group in London at the end of the month, according to an official familiar with the move. Lisa Russell, a CIBC spokeswoman, did not comment and Barker-Bennett could not be reached.

Fleet Boston Financial has lined up three banks to round out the syndicate on a $125 million line it is providing for Koger Equity, but is still in search of one additional player. The bank is waiting for one bank which is expected to sign on shortly, said Jeffrey Warwick, senior banker. Fleet, which acted as administrative agent and lead arranger, will hold $35 million. He declined to comment on the hold levels for Wells Fargo Bank, which will be acting as syndication agent, Compass Bank and Comerica Bank.

Moody's Investors Service has placed Atlanta-based Georgia-Pacific's Baa3 senior unsecured debt ratings and Prime-3 short-term rating for commercial paper under review for possible downgrade to the dismay of company officials. A junk-grade rating would push up borrowing costs for the company, afflicted by weak performance and higher than expected debt. But, Georgia-Pacific spokesman Greg Guest disagrees with the announcement. "Georgia-Pacific is disappointed with Moody's review and confused by the timing. Georgia-Pacific is ahead of the debt-retirement schedule and is in negotiations with Willamette. If the Willamette sale goes through the debt-retirement schedule would be ahead of time," he said. Georgia-Pacific believes the review has more to do with the climate and position of Moody's than the fundamentals of the business, Guest rejoined.

Greenwich Capital Markets has hired Karim Bhayani to head up the structuring of new issue collateralized mortgage obligations. Bhayani, who will be a v.p., fills a newly created role and reports to mortgage-backed securities structuring chief Neil Ahuja. He started at GCM in late December. His prior job was as a v.p. on the CMO origination desk at J.P. Morgan Securities, where he reported to CMO trading and origination chief Alan Galishoff. Bhayani left JPMS in late October, after the firm began a fixed-income division wide cost-cutting drive.

UBS Warburg will hold a bank meeting for Hollywood Entertainment on Jan. 23, launching syndication of a $175 million facility. The deal refinances a $255 million Société Générale-led facility that expires in March and is contingent on a $100 million stock sale (LMW, 12/17). Comprising a $25 million revolver and a $150 million term loan, pricing should be in the LIBOR plus 31/ 2% range for the revolver and LIBOR plus 4% for the term loan, said a banker.

Accredo Health has tapped Bank of America for an expanded $275 million acquisition credit backing the $415 million purchase of the specialty pharmaceutical services division of Gentiva, leaving investors excited about owning paper in a "very hot sector." Launch is expected in several weeks, said one buysider, who also bemoaned the paucity of primary new issuance in this area. Pricing and the size of a "B" tranche have not been determined, the buysider said. At closing the transaction will be paid half in cash using the senior secured credit facility, said CFO Joel Kimbrough, in a conference call. The other half will be stock, he added. Accredo has a $60 million revolver with B of A, according to Capital DATA Loanware. B of A officials did not return calls.

Iridium's bank debt jumped to 45 from 28 last week following news that Motorola would have to pay $300 million of Iridium's debt. A court ordered early last week that Motorola would have to pay J.P. Morgan to satisfy a guaranteed part of an $800 million loan made to the now defunct Iridium when Morgan was still Chase Manhattan Bank. The payment of the $300 million, guaranteed by Motorola, will be spread across the $800 million credit, so holders of the bank debt will get back 37.5 cents on the dollar, plus 7.5 cents in interest, market players said. Bear Stearns was reportedly involved in the trades, but that could not be confirmed with officials there.

BNP Paribas' has garnered $1.85 billion for insurance giant Zurich Capital Markets' ZCM Matched Funding Corp. but is still hoping to bring in a few more banks to round the facility up to $2 billion. Paul Dart, managing director in global treasury corporate finance, said ZCM is the funding vehicle for Zurich Capital Markets and is used to support a $2.5 billion commercial paper program. The last facility was $1.25 billion, but more was required so the flexibility is there to expand the program.

Kmart, the struggling discount retailer, is looking to refinance about $1.5 billion in credit facilities and slap on an additional $400-500 million, but bankers say the company will have to pay up to get it done. As first reported last week on LMW's Web site, Kmart is looking at a $1.5 billion revolver and a $500 million institutional tranche, said a banker. "Some relationship lenders will probably bail," he added, so the institutional tranche would be built in to widen the universe of potential investors. The spread is currently LIBOR plus 1%, but the once BB+ company which is now BB is more likely to have pricing in the LIBOR plus 21/ 2% range, sources said. Bankers have suggested the company will have to go down the asset-based route in order to leverage the mass of inventory and assets rather than rely on an uncertain cash flow.