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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.

The float of the Petroleum Authority of Thailand (PTT), the largest IPO in Thailand's history, went on sale to retail buyers yesterday (Thursday) morning. Enthusiasm for the country's latest privatisation exercise is strong. The first lot of 220m retail shares allotted to Thai individual investors sold out within one hour. They were offered through public subscription on a first-come, first-served basis. PTT is offering a total of 800m shares, priced from Bt31 to Bt35 each. Of these, 750m are new PTT shares and 50m are owned by the government. Some 480m shares will be allotted to local investors, and the rest to foreign institutions.

Singapore's efforts to grow and diversify its capital markets suffered a blow this week as CapitaLand was forced to cancel the float of its newly created SingMall Property Trust as demand for the issue failed to materialise. The float was to have been the first Singapore real estate investment trust (REIT) and was thought to have been well timed, given the search by investors for relatively low risk stocks with high yields.

Japanese securities firm Nomura is to sponsor its first Hong Kong IPO since 1997. Privately owned Zhejiang Glass is due to begin trading in 'H' share format on December 10. The deal was launched on Tuesday. Zhejiang Glass is the fifth largest flat glass producer in China, a country that controls 28% of the global industry. As well as being the first privately held Chinese company to float in Hong Kong, it is the only privately-owned glass company in China. Zhejiang has achieved dramatic growth since 1998, growing turnover and net profit at a compound rate of 54% and 114%, respectively.