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UBS Warburg has set a bank meeting tentatively for Nov. 8, backing Investcorp's buyout of Schlumberger's Neptune water-meter business, and will be bringing a $190 million facility to the market, comprising a $30 million revolver and $160 million in term loans. A banker familiar with the situation said J.P. Morgan was also considered by Investcorp to lead the financing, but would not provide the loan on such favorable terms in the current tough market. UBS bankers declined to comment. Calls to a J.P. Morgan spokesman were not returned. Investcorp officials in New York referred questions to officials in the London office, who could not be reached.

Another huge issuance week (ended November 1), with $30 billion in debt hitting the market. Highlights of the week include the $6.0 billion two-tranche deal for GMAC, which saw strong demand at a concession to the secondary market. Another notable deal in the market was the $2 billion three-tranche offering from Tenet Healthcare, which capitalized on its recent upgrades to investment grade by both Moody's and Standard & Poors. The average dealsize increased to $860 million as more jumbos came to market. The weighted average maturity also increased, to 11.8 years as issuers looked to take advantage of the decline in Treasury yields to lock in attractive all in rates. With the Treasury's decision to 'suspend' sales of 30-year bonds, there is likely to be a pickup in long dated corporate issuance as investors continue to have demand for duration.

Ametek closed a $300 million deal late last month, replacing a $195 million revolver ahead of schedule and opting for a long-term facility to avoid refinancing in a rockier market. There was another incentive. "A five-year facility is much more favorably received by rating agencies; they know you have the commitment there for the long term," said Deirdre Saunders, v.p. and treasurer. The company had considered a 364-day facility, but ended up going with a five-year deal. Ametek sought out a $250 million deal, but it was oversubscribed by $100 million. The company chose to cut back to $300 million because it didn't need the full amount. Saunders added that the company has also grown through acquisitions, and needed a larger credit to accommodate that.

Moody's Investors Service downgraded the senior unsecured debt ratings of Phelps Dodge to Baa3 from Baa2, reflecting the constraints of the company's operating performance and financial flexibility. In light of this, the ability of the company to meaningfully reduce debt levels, improve coverage ratios and restore its balance sheet to historic strengths will be stretched out over a longer time frame. Headquartered in Phoenix, Ariz., Phelps Dodge is the world's second largest copper producer. Calls to Ramiro Peru, cfo, were not returned.

Nuveen Investments has moved to fill the vacant spots left by the departure of Jeffrey Maillet and his team of seven, prompting speculation from the market on what direction the firm's loan effort will take. Four managers from Symphony Asset Management, a company acquired by Nuveen earlier this year, will now manage the loan funds. The Symphony team to this point has been focused mainly on fixed-income, fueling speculation that Nuveen is not totally committed to the loan market. "Nuveen is looking to de-emphasize the funds, and rumblings are Maillet was looking for an organization that wants to commit to the loan area, while Nuveen has concerns over the credit quality of [loan] paper," said an industry analyst. Another loan salesperson laughed at the notion of Nuveen de-emphasizing the loan business.

Nomura Securities International, the global leader in yen bond underwriting, will shift its strategic mandate with the goal of making itself into a bulge bracket firm keenly focused on global fixed-income. Stefano Ghersi, the London-based head of international capital markets, says the firm has just begun to build up all of its regional groups and is broadening its product lines for debt capital markets to create a multi-currency origination and distribution platform. "This investment makes sense in the medium-term in terms of mandates and opportunities. Particularly from a debt point-of-view, there has never been a better time, because there is an increasing need for credit as a strategic resource," says Ghersi.

A $15 million auction of Quality Stores paper went off last Wednesday in the low 20s. Dealers report levels a month ago were in the 38 range. The rumored seller of the piece was Union Bank of California. Calls to Dan Brigham, bank spokesman, were not returned.

Managers of floating-rate funds are bracing themselves for retail investors to exit the loan market this quarter and beyond, as rising defaults and the record low LIBOR rate hit overall loan returns and those investors find loan funds may not be the sure bet they thought they were. Eric Jacobson, a Morningstar analyst, noted over the last year, many of the funds have already seen dramatic redemptions. "This is the worst period in the history [of loan funds], because the default problems coexist with the onset of mark-to-market pricing," he explained. With the development of mark-to-market pricing the true value of loans held is revealed, hitting the Net Asset Value figures and increasing volatility.

Young Broadcasting's bank debt got a nudge with the announcement of the company's tender offer on its bond deal. The bank debt traded up to 98, up from the high 97 range. The "B" paper traded in a $2.5 million swap. On Oct. 26, the company announced a tender offer. "They think the bonds have too high an interest rate and they're trying to buy them back," a dealer explained. He added that it makes the company and therefore the bank debt more appealing because it would mean Young Broadcasting would be less leveraged. Meanwhile, dealers note the broadcasting sector overall remains about flat. Emmis Communications' "B" paper was bid at 95 1/2 last week, which is about level. Calls to Vincent Young, the owner, were referred to spokesman James Morgan.

Sydney's APN News & Media has agreed to buy O'Reilly's Wilson & Horton newspaper business in New Zealand for A$1.2bn ($606m) in stock, bonds and assumed debt. APN is 40% owned by Independent News and Media. Independent and Wilson & Horton are both controlled by Irish billionaire Sir Tony O'Reilly, the deal is subject to shareholder approval, due in a meeting set for December 7.