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The $275 million bank deal for CommScope led by CIBC World Markets and Citibank has been nixed after investors refused to bite on the richly priced and discounted "B" term loan and the company reworked its' acquisition plans. Phil Armstrong, director of investor relations for CommScope, would not confirm the bank deal has been cancelled, but said difficulties in the financing market were among a list of reasons why CommScope is scaling back its investment in Lucent Technologies fiber-optic cable business. As part of the new joint venture CommScope is investing $203 million in cash and equity to buy the business and Furukawa Electric will pay over $2 billion in cash. A source familiar with the deal said the banks may come back with a rejiggered credit.

Credit Suisse First Boston and BNP Paribas launched the underwriting phase of the $600 million Teco Tricon project loan last Thursday. A banker familiar with the deal said 12 banks have been approached for $75 million commitments. The spread on the deal is LIBOR plus 13/ 4%, but fees were not disclosed. Underwriting on the credit is expected to close by year-end, he added.

Mark Grotevant, one of the co-heads of high-yield research atCredit Suisse First Boston, and the firm's sole remaining senior telecom analyst, plans to leave the firm by year-end. His departure set off a series of rumors across Street high-yield desks, most of which centered on the possibility that Grotevant was a victim of CSFB's high-profile compensation renegotiation activities. Bennett Goodman, CSFB's global head of leveraged finance, dismisses this out of hand, saying that Grotevant is retiring from the sell-side and notes that, "He's going to have a very big bonus, and hopefully he'll go to the buyside and be a client." Sam DeRosa-Farag, global strategist, and Tom Klamka, who covers industrials, had shared high-yield research management responsibilities with Grotevant, and will stay on as co-heads, according to Cristina von Bargen, a firm spokeswoman.

The defensive nature of the healthcare industry pushed up Dade Behring's levels to 89-90 last week in an auction. Deutsche Bank was rumored to be the buyer of the $5 million chunk, although officials there would not confirm the transaction. Another $5 million piece traded after the auction in the same range. Levels are up from the 85-86 context late last month (LMW, 10/30). "It's been getting bid up," said a market player. "In general, health care is a safer bet in a bad environment. Dade is in diagnostics, which is also good." Dade Behring, based in Deerfield, Ill., makes diagnostic equipment which tests how blood coagulates. Calls to John Duffey, cfo, were referred to Pattie Overstreet-Miller, v.p. of corporate communications, who did not return calls.

American Tower's levels continue to hover in the low 90s range as $10 million of the bank debt traded last week at 91 1/2. Dealers said they expect the credit will soften further as tower companies begin to feel the effects of a weak telecommunications industry.Joseph Winn, cfo, said, the company has seen good strength in the paper and solid demand on its towers. "The tower companies have been reporting strong organic growth." Winn said. "Concerns around this paper have been due to leverage or debt. We've been supported for a long time in this marketplace, and we're going to do just fine."

Applebee's International, the developer and operator of franchise restaurants, waited for a three-year prepayment penalty on its old term loan to end before switching to a cheaper $150 million, three-year revolving credit facility led by BANK ONE. Carol DiRaimo, director of investor relations, explained the old $225 million loan was arranged in 1998 when Applebee's financed Rio Bravo, another concept requiring significant capital expenditure and restricting cash flow. The term-loan component had a minimal amortization schedule and higher rates of LIBOR plus 21/ 4%, she explained. It was led by BANK ONE with Merrill Lynch as the arranger, she noted. Rio Bravo was sold off in 1999, improving cash flow, reducing capital expenditure and changing the borrowing requirements. The old term loan was not set to mature until 2006, she noted.

American Standard has completed a new $1.3 billion revolver led by J.P. Morgan after seeing the facility oversubscribed during syndication. Scott Massengill, v.p., and treasurer, said relationships and forward momentum propelled the deal in spite of a tough market. "The bank group liked the positive direction of the company and significant commitments were made by relationship banks," he said. "The over-subscription means American Standard pays less in upfront fees and lenders in the top tiers get to reduce their level of commitments." There was no need to upsize the facility, as the manufacturer is looking to reduce debt in the coming years, explained Massengill.

Jeff Maillet, Eileen Rives, Gregory Bunk, Lisa Mincheski and Steven Hill, who left Nuveen Investments earlier this year, have resurfaced at FrontPoint Partners, the Greenwich, Conn.-based firm run by Philip Duff, the former ceo of Van Kampen Investments. Maillet, his old team from Nuveen and Benjamin Klaas, formerly of LaSalle Bank will run the FrontPoint distressed securities team, one of the two strategies being developed by the company. The other initial focus is fixed income relative value, run by a team of three formerly of West End Capital Management. Questions to Maillet and Duff were referred to a public relations firm that did not return calls by press time.

The much awaited hybrid placement on behalf of government owned Korea Deposit Insurance Corp (KDIC) will kick off next week as the three lead managers set out on premarketing. The planned $500m bond/exchangeable will be a stern test of the market's appetite for a structure that many consider to be an ambitious mechanism for monetising state assets.

Computer and electronics company NEC plans unveiled to be the first Japanese non-financial issuer to bring a hybrid debt and equity deal this week by launching ¥100bn in a trust-preferred securities deal through NEC Business Trust, a wholly owned subsidiary. The Japanese corporate also announced the launch of ¥100bn of euro-based convertible bonds. If the trust-preferred securities deal succeeds, it will be the first time a Japanese non-financial institution has launched such a hybrid instrument. NEC used the structure because it does not dilute earnings for common equity holders and will not result in any changes to its credit rating.

In a bid to access international markets and help out highly leveraged state company National Power Corp (Napocor), the Republic of the Philippines has turned towards the Euromarket once more. The Philippines finance ministry (DoF) plans to launch a Eu250m bond issue with a tenor of three to five years - its first foray into the market since its debut bond in 1999. The DoF said that once it has completed the issue it would on-lend the proceeds to Napocor in order to help the state owned company meet its financing requirements in the coming months.