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Analysts are far from a consensus on whether the debt of embattled telecommunications equipment manufacturer Marconi is a buy or a sell. The only point analysts do agree on is that the company's dim picture should be a bit clearer when it releases an earnings statement today. At 30 cents on the dollar, Ziki Salav, a credit analyst at Dresdner Kleinwort Wasserstein in New York, called Marconi (BBB-) a buy, because the company's creditors are in such a bad position that it should be relatively easy to renegotiate its credit agreements. "The banks are in a bad position. The company pays LIBOR plus 40 basis points and there are no covenants in the agreement. It should be easy for the company to extend the maturity of its credit facility to '05 by giving the banks seniority," he added.

Nextel Communications' bank debt was offered at 84 5/8 last week, but there were no takers. Dealers faulted a limited number of buyers and a shaky market for Nextel's continued softening. They noted that based on fundamentals, the credit should be trading higher. "The bonds are up and the company has just announced deals for better capacity," said a trader. "But the credit is by no means bullet proof." He added that stressed players may be waiting for a better yield before they move in on the paper. Distressed dealers added that there's still too much uncertainty in the market to jump in on Nextel right now. Nextel is a telecommunications company based in Reston, Va. Calls to Paul Selah, cfo, were referred to Paul Blalock, head of investor relations, who declined to comment.

Pacific Investment Management Company has added two senior portfolio managers to its European team in an effort to gain more mandates for its European products and to compete for more third-party business. Joe McDevitt, executive v.p. and head of PIMCO's London office, said, "We're trying to become more of a core manager in the European fixed-income market. Clients tended to see us as a global, U.S., investment-grade and high-yield manager." PIMCO has roughly $7.5 billion in U.S. core bond and specialty mandates under management for European clients, said McDevitt.

Sioux City, Iowa-based Terra Industries extended and reduced its revolving credit facility and took the honor of being the first high-yield issuer of notes to re-enter the market last week. Francis Meyer, cfo, said the existing $225 million asset-based facility has been reduced to $175 million and extended from its maturity date of 2003 to 2005. Citibank led the old and restated facility as well as the planned $200 million senior secured notes issuance, stated Meyer. Pricing on the credit is LIBOR plus 23/ 4% with $69 million expected to be drawn on the revolver.

Washington Group's term loan traded at 63-64 last week while the revolver hit 73-75. Levels on the revolver were 82-83 last summer (LMW, 8/12). An estimated $10 million changed hands. At the time dealers noted increasing comfort with the credit in light of a stronger construction industry. But a softer market overall may be hitting Washington Group again. The Boise, Idaho-based company is one of the country's largest construction firms.

About $12.5 billion of investment grade debt (including split rated BBB/BBs) came to market in the week ended October 11. Once again, the deals were split: Higher quality credits (including banks, the Province of Ontario and Wal-Mart) took advantage of the steep yield curve to issue at low all-in yields at the front end of the curve. Aa2/AA Wal-Mart, for example, issued 2Y debt with a 3 _% coupon. Down the credit spectrum, issuers were happy to extend out to 10+ years to take advantage of low spreads. Almost $7 billion in BBB and split-rated paper came to market, once again heavily weighted toward the utility and energy sectors.

Ackerley Group's 9% of '09 (formerly B3/CCC+) zoomed from an 82 bid to 103, following an acquisition announcement by Clear Channel (Baa3/BBB-). Ackerley is a billboard advertiser and owner of television and radio stations. "The purchase shows that even in a tough environment, there appears to be some market for TV assets," says Andy Van Houten, media analyst and co-head of high-yield research at Deutsche Banc Alex. Brown. Nonetheless, Deutsche Banc maintains its underweight recommendation for high-yield television bonds.

Goldman Sachs, Merrill Lynch, Morgan Stanley and Lehman Brothers, have all signed up as retail participants in a $425 million two-year term loan for AES. Power sector financiers say it highly unusual to see so many bulge bracket firms sign up to a single loan facility.

The average size of trades has been shrinking, pushing the thorny issue of assignment fees to the fore. These standard $3,500 payments to the administrative agent on a loan when it is traded are cutting into the upside for desks. "When you were doing $20 million trades, it didn't matter," said Jon Weiss, head par trader at Bear Stearns. "But on a $2 million trade, it does."

Bear Stearns is seeking to pick up key bankers with transaction and customer relationship experience for its London-based origination desk, according to Noel Dunn, senior managing director for debt corporate finance. Dunn says there are roughly 10 bankers on the desk, while noting that, "We have more hiring to do and the current market makes for a terrific opportunity to hire good people."

Merrill Lynch and Morgan Stanley are leading a $1.9 billion financing package for Burlington Resources' acquisition of Canadian Hunter Exploration, parlaying advisory roles they won quietly when Burlington went straight to them in hopes of minimizing potential leaks of the deal. Dan Hawk, v.p., treasurer, said the company turned to Morgan Stanley for a mixture of relationship and understanding of the business and to Merrill because of its understanding and expertise in the Canadian sector.