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Montreal-based Microcell Telecommunications, a wireless player with a network covering 95% of the Canadian population, is considering entering a cross-currency interest-rate swap. Microcell hired Mario Brin, a private financial consultant and derivatives specialist, three months ago to work closely with company officials to determine the best way to hedge its risk on a high-yield bond offering that matures in 2007. The company is looking to pull the trigger on the swap by early next year, said Brin. Officials at the company confirmed Brin's role.

Highly-rated bank credit derivative counterparties are set to benefit from the collapse of Enron, which was a top 20 credit derivatives market maker, said traders in London and New York. Firms in both countries were busy liquidating positions this week, which could total USD6 billion of gross notional exposure to Enron as a counterparty, according to some estimates. A tier one house typically executes USD50 billion a year.

Bonus time...nobody move! As the year draws to a close, dealers are awaiting their bonuses with contained enthusiasm, noting an especially rough year could spell modest figures. They're also staying put, but to the cynics, corporate loyalty isn't the main reason. "Give it two weeks for bonuses to come out, then another week for the check to clear, then you'll start seeing people jump," one dealer said wryly. Another market player put things in a different light: "In this market, you should be happy just to have a job." He joked that his desk would put out a table at a holiday party just for resume swapping and networking.

Up-front fees for institutional tranches bounced up in September as the trend of deals with original issue discounts continued. September's three-month rolling average showed the biggest increase in fees (those commited at the lowest tier) to 9.7 basis points while October dipped a bit to 8.1 basis points and November shot up again to 11.5 basis points. These levels represent the average retail and institutional up-front fees for each million commited to acquisition related highly leverage loans for a rolling three-month average

This chart, provided by Citibank/Salomon Smith Barney Inc., tracks bid-ask prices for par credit facilities that trade in the secondary market. It also tracks facility amounts, ratings, pricing and maturities.

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.