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Loral Space & Communications, the satellite manufacturing and satellite-based services company, has extended the maturity of its credit facilities, including the $600 million Loral SpaceCom Facility and the $494 million Loral Satellite Facility. Loral also improved the amortization schedules, explained Tony Doumlele, senior director of investor relations. The extension frees Loral from principal payments of $535 million in 2002.

A Jan. 3 sell recommendation on Magellan Health Services issued by Elie Radinsky, a high-yield health care analyst at Jefferies & Co. and a 2001 Institutional Investor All-America Fixed-Income team runner-up, created a stir in the junk community. In response to his actions,Kathleen Lamb of Credit Suisse First Boston, an II second-teamer, sent a Bloomberg message criticizing Radinsky to her research colleagues and sales force. Meanwhile, Magellan, a psychiatric care provider and major junk issuer, has seen its bond prices fluctuate wildly.

Robin Menzel, a senior high-yield analyst covering industrials and utilities at Lehman Brothers in London, has left the firm. Menzel had been at Lehman for one and a half years. He could not be reached for comment. Stuart Prosser, a firm spokesman, declined to comment on his departure, other than noting that the firm is actively seeking a replacement.Luke Spajic, another high-yield analyst, has assumed Menzel's responsibilities for now, according to Lehman insiders. Spajic declined to comment.

London-based analyst Marc Watton of BNP Paribas is warning investors to avoid Spanish electric utilities' paper, because he fears the sector could suffer the same fate as happened in California. "In Spain there have already been blackouts and there are no plans to build any generation capacity," says Watton, adding that last month prices on the wholesale market peaked and supply failed to meet demand as suppliers scrambled to meet their obligations. In addition, Spain's electricity interconnectors with its neighbors Portgual and France are inadequate and already fully utilized with existing contracts, he says. Accordingly, Watton recommends avoiding all from Endesa, Ibedrola, Union Fenosa and Hidroelectrica del Cantabrico. To add to the problems, Spain is highly dependant on hydro-electric power, which could suffer in the event of a dry winter.

High-yield portfolio managers are increasingly optimistic about the prospects for the lodging sector. Bonds of lodging companies were hit hard as travel fell off in the wake of Sept. 11. However, Mark Durbiano, portfolio manager at Federated Investors in Pittsburgh, says several names can get through whatever remains of the downturn. Federated has added to its holdings of Hilton Hotels 8.25% notes of '11 (Ba1/BBB-), which were trading at 97 last week. It has also bought Starwood Hotels' 6.75% notes of '05 (Ba1/BBB-) and Vail Resorts' 8.75% notes of '09 (Ba3/B), which were trading at 98 and 97.5, respectively. Durbiano says he likes these companies because they have "a very strong asset base."

Kmart's bank debt was bid up last week on anticipation of a debt restructuring. Levels hit the 95 range early in the week, up from the 90-91 range. By Friday, the Street market was 95-97. Dealers heard mixed reports of actual trading, but were skeptical since there were so few sellers. "There hasn't been a lot of volume--maybe a couple trades. There's been a lot of bidders but not as many sellers," a dealer said. Holders are expected to be in a better position with the restructuring. The retail chain is based in Troy, Mich. Calls to John T. McDonald, cfo, were referred to spokeswoman Jack Ferry, who did not return them by press time.

A number of asbestos credits were bid up last week on news that the litigation cases would be consolidated under one judge, rather than handled separately. Dealers reported W.R. Grace debt traded up to the high 40s from the mid-40s, while Armstrong World Industries' debt was bid up to the 53 range, up from 50 a week ago. "The market views this as a positive, since it speeds the process up," said a dealer. W.R. Grace is a Columbia, Md.-based chemical producer. Robert Tarola, cfo of W.R. Grace, declined to comment. Spokesman Greg Euston said, "While we don't know which way the decision will go, the company believes having a single judge means consistency in the decision-making process. It's good for all the companies involved." Calls to Armstrong officials were referred to spokeswoman Jean Gallagher, who did not return them by press time.

Bankruptcy exit credits for Loews Cineplex and Carmike Cinemas are set to emerge over the coming weeks with the market hoping for a reception similar to that of Lehman Brothers' $370 million exit financing for Regal Cinemas, which had a blockbuster opening. Regal's term loan "B" blew out with four times oversubscription and over 50 accounts. If Loews and Carmike open to similar reviews, it would mark a drastic turnaround in sentiment for a sector shunned just over a year ago.

McLeodUSA's bank debt was pushed down to 69 from the low 70s last week in a series of small trades following the company's filing for Chapter 11 protection in December. Last week, the company also announced that the company would offer its publicly traded bonds in exchange for at least $560 million in cash, plus about 15% of its common stock.

Merrill Lynch has reorganized its U.S. fixed-income credit research group, further combining high-grade and high-yield, and creating a flat reporting structure beneath Clare Schiedermayer, who was promoted from global head of high-yield credit research to manager, credit research-Americas. Bill Reed, managing director and co-head of investment-grade research, has been let go as a result of the changes. Schiedermayer would not discuss Reed, but says the changes were an extension of those made last year to address credit convergence between high-grade and high-yield (BW, 5/28).

Strong financial fundamentals bolster the $300 million revolver currently in syndication for Cabot Industrial Properties, according to Philip Kibel, senior analyst at Moody's Investors Service. Kibel, who assigned the credit a Baa2 rating, notes that the company has strong fixed charge ratios as there aren't many debt maturities coming due in the near future. As a cautionary note, however, he added that the company has a high amount of secured debt and high variable debt levels. Cabot owns numerous industrial properties and is based in Boston. The deal is expected to close sometime this month.

Stryker Corporation refinanced its existing Bank of America led $1.65 billion credit line, signed in Dec. 1998, to take advantage of its new credit rating and investment grade-status. The new deal will enable the company to save roughly $9 million in interest expense through a reduction and re-structuring of the credit. "The dramatic improvement in credit rating, or credit profile, is what allowed Stryker to access the credit markets now to refinance the debt on much more favorable terms," said Christopher Homrich, v.p. and treasurer of Stryker. "I think the transaction was successful. We were very satisfied with the overall pricing," he added. The new deal gives the company more operational flexibility as financial convenants on the deal are more lenient.