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Allstate came to market at the end of last month with a $300 million collateralized debt obligation with leveraged loans representing the majority of the structure's collateral. A banker close to the deal said the vehicle, AIMCO 2001-A, is structured as an asset management deal--a traditional cash flow arbitrage structure. Calls to Allstate were not returned by press time.

Leap Wireless' bank debt jumped a few hurdles last week and traded up to 78 from the 74 range in a series of trades totaling close to $100 million. Goldman Sachs reportedly traded a majority of the total. The telecommunications carrier is based in San Diego. Calls to spokeswoman Sarah Thailing were not returned by press time.

Merrill Lynch's latest spate of personnel cuts has dealt a severe blow to its attempt to remain a formidable high-yield trading and underwriting operation, say senior buy- and sell-side high-yield executives. Many speculate that a lack of familiarity with the junk sector among senior management, coupled with sharp losses in its trading book, have been the basis for its rapid pullback. Indeed, former Merrill high-yield officials are said to be telling competitors that Merrill's high-yield losses will total more than $50 million this year alone.

Two auctions last week $20 million sales of each produced Huntsman Corp.'s pro rata paper, pushing levels up from the 66 range to 69. Dealers noted the surge in levels from 50 a month ago, but were unsure of what's supporting the levels other than the recent bond deal announcement by Lyondell (LMW, 11/25). J. Kimo Esplin, cfo of Huntsman Corp., could not be reached by press time.

Allied Waste's "B/C" continues to trade in the 99 range on news of a bond deal that will pay down the company's bank debt. The estimated volume last week was $20 million. Late last month, the company announced a $750 million bond deal that would pay down a portion of the company's $7 billion deal. Allied Waste is a trash-hauling company based in Scottsdale, Ariz. Calls to Thomas Ryan, cfo, and Mike Burnett, head of investor relations, were not returned.

Merrill Lynch has laid off two high-yield analysts, and reassigned a third. Mike Plancey, a v.p. who covered the paper and forest products sectors confirms that he has been let go. He says he is looking at opportunities on the buy-side. He was at Merrill for five and a half years. Eric Matejevich, a gaming analyst and v.p., declined comment, but a high-yield official formerly at Merrill confirms he was laid off and says Matejevich is also looking for opportunities on the buy-side. The official says Jonathan Savas, a director and wireline telecom analyst, has moved to an unspecified position within another department at Merrill. Savas did not return calls. Clare Schiedermayer, head of high-yield research, did not return calls.

Following a hefty oversubscription, Credit Suisse First Boston and Bank of Nova Scotia flexed pricing for the six-year $172 million Weight Watchers International "B" term loan. A banker following the deal said, a 1/2% flex was put in last week. The credit was already priced at a trim LIBOR plus 3% pre flex, with bankers citing the improved profile of the once highly-leveraged company following a successful initial public offering in November and repayment of bank debt via a bond issuance. The new "B" will refinance existing debt, priced at LIBOR plus 4% (LMW, 12/10).

As much as $100 million of Enron Corporation's bank debt traded last week in the 22-23 range as vultures continue to pick at the paper. Both Goldman Sachs and Deutsche Bank were rumored to have moved large pieces over the week, although officials at both shops declined to comment. It could not be determined whether the desks were selling off their own exposure or acting as brokers. An estimated $200 million of Enron bank debt has traded over a two week span, according to dealers. Levels have stayed in line with the bonds and have not moved much in that time.

Credit Suisse First Boston is using a synthetic term-loan structure in its deal for Washington Group, further highlighting the continuing shrinkage of banks willing to fund the pro rata part of deals and the increasing importance of institutional money in the market. The deal is similar to the innovative Premcor Refining Group credit launched by Deutsche Bank in the summer, with the synthetic functioning as a fund to back letters of credit. "The structure is designed to expand the universe of institutions able to sign onto the deal," a banker familiar with the loan said.

Moody's Investors Service has assigned a Ba3 rating to J.P. Morgan and Credit Suisse First Boston's credit for CSK Auto--a new asset-backed credit facility, launched into the market at the end of November. Marie Menendez, v.p., senior credit officer, corporate finance group for Moody's, explained the $100 million term loan with three-year bullet maturity and $225 million revolver is totally secured and tied to a borrowing base, while the existing credit facility has a B1 rating. The new credit is larger and expected outstanding borrowings on the new credit are much less. A $225 million senior unsecured notes offering, has been rated B2.

A successful bond offering led by Credit Suisse First Boston, J.P. Morgan andUBS Warburg for CSK Auto has resulted in a reduced and restructured bank deal. The bank debt, led by J.P. Morgan and CSFB now consists of a three-year, $150 million revolver and a $150 million, three-year term loan. Both tranches now have a LIBOR plus 31/ 2% spread, up 1/4%. There is also a 1/2% commitment fee on the revolver. The bank debt previously was $325 million, split between a $225 million revolver and a $100 million term loan. Calls to Don Watson, cfo, were not returned. There is also rumor that CSFB, J.P. Morgan, Deutsche Bank and Merrill Lynch will rework the Collins & Aikman deal, depending on a successful bond offering. Calls to the appropriate bankers were not returned by press time.

Merrill Lynch has laid off two junk salesmen: Jeff Keith, a director, and Gregory Froehlich, a v.p., according to several buy-side and sell-side high-yield executives who spoke with them. Keith declined comment, other than to say he is currently looking for a new job. Froehlich could not be reached.