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Decorative Concepts, a home decor products company controlled by private equity firm Fenway Partners, tapped Deutsche Bank to lead a $100 million asset-based facility, after hiring Peter J. Solomon to solicit bids and advise on the financing arrangements. The deal also includes a $30 million senior subordinated debt offering with warrants. PJS acted as the advisor and sole placement agent.

Paper for Lyondell traded up to 94 1/4 early last week, which is up from the 93 range at the end of September. Dealers said the chemical sector, which had been struggling prior to the Sept. 11 attacks, was directly impacted by the terrorist event. "Lyondell was a par name before Sept. 11," a dealer explained. "Chemical names have just been beat up so bad." Dealers say chemical names are directly linked to the strength of the economy. They say even the connotation of chemicals, especially in war time, is viewed negatively and pushes down levels. "Everybody's got chemicals on their brain right now. In that way, you'd think [chemical credits] would get stronger," a dealer remarked. Lyondell, based in Houston, manufactures polymers and petrochemicals. Calls to Robert Blakely, cfo, were forwarded to an automatic answering service that refused unsolicited calls. Messages to the company were not returned.

Dallas-based Belo, the television and newspaper company, is in talks with J.P. Morgan about refinancing its $1 billion facility that expires in August 2002, and expects to complete the new deal by year-end. The refinancing is amidst a market that sees continued advertising weakness, especially national revenues at the television stations and classified employment revenue in the newspapers, said a banker. There has also been revenue losses specifically related to the coverage of Sept. 11, with advertisers unwilling to associate products with the coverage. Calls to Dunia Shive, executive v.p., and cfo and Carey Hendrickson, v.p., for investor relations were not returned. Calls to the J.P. Morgan spokesman were also not returned.

Todd Sycoff, the head high-yield trader at Merrill Lynch, accepted a compensation package and resigned last Thursday morning, according to several senior high-yield officials on the buy- and sell-sides. Jessica Oppenheim, a Merrill Lynch spokeswoman, was unable to confirm Sycoff's resignation at press time. Several buy-side high-yield managers say they were told by Merrill junk pros last Thursday that Sycoff, whose principal focus was on telecom credits, has decided to take some time off. He reported to Dow Kim, the head of Merrill's fixed-income group. Sycoff could not be reached, and did not respond to a phone message left with a family member.

Sandler O'Neill, the niche investment-bank devastated by the Sept. 11 attacks, has hired Charles Smart and Dhiren Toolsidas, two structured product research veterans from defunct e-trading network Visible Markets, to rebuild its fixed-income quantitative analytics effort. The positions are new, and Sandler O'Neill insiders were uncertain as to who had held the positions previously. Smart and Toolsidas will report to John Doyle, the firm's head of fixed-income. Smart will be a managing director, Toolsidas an associate director. Doyle did not return a phone call seeking comment.

Tenneco Automotive's debt traded up to the 75-77 range from 74 early last week on the announcement of better numbers. Approximately $20 million changed hands, but buyers and sellers could not be ascertained. On Oct. 25, the company announced it has continued to successfully generate cash and reduce its debt by $111 million in the third quarter. Officials noted they are encouraged by improving aftermarket margins. Traders said the auto sector continues to struggle, so any positive announcements tend to get a reaction in the market. Tenneco is an auto parts maker based in Lake Forest, Ill. Calls to Mark McCollum, cfo, were referred to treasurer Paul Novas, who did not return them.

John Chester, head of high-yield research and the telecom analyst at TD Securities in New York, and Jacob Barker, a senior media analyst, were among the 200 layoffs recently announced by the firm, according to firm spokesman Mike Sherman. The moves have analysts inside the firm and at rival firms questioning TD Securities' commitment to its high-yield business, given that media and telecom have long been the firm's bread and butter. Mark Grotevant, now co-head of research at Credit Suisse First Boston, once led the telecom group at TD Securities. Both Chester and Barker had left the firm as of press time.

Tower Records amended its revolving credit facility early this month, upping its total credit and reducing the size of its pay-downs in anticipation of the holidays. The company got a relaxed pay down schedule along with larger funding availability. Michael Solomon, ceo, explained that the company sought out the amendment several months ago. "We've had a restructuring plan in place since March," he said. "We sought it out to improve terms with the banks and because of positive performance." Tower Records, based in Sacramento, Calif., owns and operates 173 music stores worldwide. Tower markets movies, music, books, and personal electronics. The deal is due to expire in April 2002.

The upcoming multi-currency bond offering by Tyco International (A/Baa1) will feature a sterling tranche--a first for the company, according to a banker on the deal. Tyco officials declined to say how large the issue would be, but analysts say it should eclipse the company's E600 million bonds of '07 and may approach E1 billion. The roadshow is set to begin today.

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.