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PNC Capital Markets has oversubscribed the $150 million line it is providing to Eastgroup Properties and is expecting other retailers to join in the credit. The bank has received commitments totaling $177.5 million, said Mike Thomas, managing director. Lenders were attracted to the Jackson, Miss.,-based real estate investment trust's low leverage, which is at about 37%. Its industrial focus--a more stable sector--was also a factor. "People perceive it to be less risky than office or retail," he said. The deal is expected to close this week and allocation levels will be set on Tuesday.

Polaroid debt traded up to 80 from the 65 range as a debt payment comes due at the end of the month. Market players anticipate a strong recovery on the value of the company's assets. Early last week the company announced its plans to sell the assets of its Identification Systems Business Division to Digimarc for $56.5 million in cash. This is part of a company strategy to sell assets that are part of its non-core business. The Cambridge, Mass.-based company supplies instant photographic cameras and films. Calls to Bill Flaherty, cfo, were not returned. Spokesman Skip Colcord declined to comment.

Despite the turmoil surrounding Enron, Merrill Lynch and Credit Suisse First Boston are plugging ahead with their $2.1 billion deal for Northwest Natural Gas' acquisition of Portland General Electric and one co-manager is said to have committed. A banker at Merrill described it as business as usual, while a CSFB banker said the Enron situation should not have any adverse impact. He added that six institutions have been approached for top-tier roles and this stage of syndication could be completed by year-end, though he declined to name any of the banks approached, the bank that has committed or disclose the up-front fees on offer.

The syndication of at least two power project credits has been put on hold because the National Energy Production Co. (NEPCO), the contractor building the plants, is an Enron subsidiary. KBC Bank's Wolf Hollow project sponsored by AES and the TECO Power Services Trico deal led by Credit Suisse First Boston and BNP Paribas have been iced because banks are fearful of committing to a deal linked in any way to Enron. "Enron equals anthrax," to many bankers, said Eric McCartney, head of project finance for KBC said. He said when Enron drew down on its credit lines the banks got nervous. NEPCO is not part of the bankruptcy but there is too much uncertainty over the deals, he explained. A banker said other NEPCO projects may be thrown into default, even though the turnkey contractor is still a going concern. NEPCO provides turnkey solutions to build power plants.

Wyndham International's bank debt traded up eight points last week on a rumored amendment that would secure the bank debt with the company's hotel mortgages. There have been no official statements from the company, but dealers speculate the amendment will come into play early next month. About $10 million of the "B" paper traded at 89 last week, while the increasing-rate loan was quoted at 851/ 2-86. Goldman Sachs was rumored to be active in the credit, but officials there declined to comment.

Riverside, Calif.-based Fleetwood Enterprises has amended and reduced its $260 million Bank of America-led credit because it was not going to meet the terms of the deal, which closed this past summer. "The initial facility was based on optimistic numbers, which were reachable," said Kathy Schneider, director of investor relations. Fleetwood needed to have EBIDTA of $17.7 million in the second quarter and these figures were not going to be met, she said. The EBIDTA requirement was going to be tough pre-Sept. 11, but became virtually impossible afterwards, Schneider explained, and so a covenant change was necessary.

PNC Capital Markets expected to close syndication of a $100 million construction loan last week it provided to a joint venture between CarrAmerica Realty Corp. and J.P. Morgan Investment Management's J.P. Morgan Special Situation Fund. PNC will hold $25 million while US Bank and Commerzbank will hold $22.5 million each. KBC Bank andNational Australia Bank will hold $15 million each. Lenders were given up-front fees of 55 basis points on commitments of $25 million and 40 basis points on lower commitments.

Market sources said the last step in making a manager switch final on Indosuez Capital Funding IV from Credit Agricole Indosuez to Royal Bank of Canada will require approval from the ratings agencies. "Rating agenices have stopped changes before but on this deal there's no reason it shouldn't go through," said one source close to the deal, referencing the fact that the management team at RBC was the former management team on the old deal. Officials at the rating agencies declined to comment. Sources said the ratings agencies will evaluate the management team, capital available to support the deal, and infrastructure to efficiently handle administration.

Owens-Illinois' bank debt traded up to the 98 1/4-99 range from 97 last week on the lingering rumor of a bond deal. Volume on trades could not be ascertained by press time, but dealers indicate it's small. The debt has moved up from 93 over the month as Owens-Illinois is rumored to be among the companies issuing notes to pay down bank debt. There has been no official company announcement, but the debt continues to get boosted on the rumor. "People are willing to trade on that alone," said a dealer. The Toledo, Ohio-based company is a glass manufacturer. Calls to R. Scott Trumbull, cfo, and the investor relations department were not returned by press time.

Charter Communications' debt traded this week at 981/ 4 in a $2.5 million trade. Dealers cite the company's financial standing and a lack of new issue as the prime reasons for the interest. Matched against the debt of competitors such as Global Crossing and McLeod, which are both trading in distressed range, Charter looks solid, dealers said. Moreover, "There's no new issue and people are dying for paper," said a trader. Another credit pumping up on the low new issue is Adelphia Communications, which traded up to 98 7/8 from 981/ 2 last week. Calls to Kent Kalkwarf, cfo at Charter, were referred to Mary Jo Moehle, director of investor relations, who declined to comment.

Compass Minerals Group's $135 million revolver, a deal which closed nearly two weeks ago and has since become a new favorite in the secondary market, has been assigned a B1 rating from Moody's Investors Service. The debt has traded up to 100 3/4. A market player noted a big appetite for new issue has supported levels and made sellers hard to find despite uncertainties for the company considered in the rating. The rating assignment is due to the effect of weather conditions on demand for road salt deicing, according to Diane Vargas, v.p. and senior credit officer. She notes that mild winters result in earnings fluctuations. Salt deicing comprised approximately 39% of 2000 net sales after shipping and handling and 57% of EBITDA. Vargas also considered the seasonal nature of the deicing business. Proceeds from the credit facility will be used to finance the acquisition of the salt business from IMC Global.

Credit Agricole Indosuez has added two members to its new loan team taking shape under Paul Travers, managing director. Charles Kobayashi and Charles Henneman signed on last week to help build up and expand a new investment management presence at the bank after the departure of Dan Smith and some other key loan players to Royal Bank of Canada two months ago.