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Amtran, parent company of American Trans Air, is evaluating financing options, including another credit facility to back a privatization plan. Citicorp and Salomon Smith Barney terminated their commitment letter relating to a proposed $175 million secured credit facility last Friday night, citing the material adverse change clause as a get-out, explained Kim Wick, manager of investor relations. Wick said, however, the privatization is on hold for the moment and has not yet been scrapped. Financing and the shareholder vote are the only hurdles left, she added.

Merrill Lynch is considering whether to change the rules for its Euro High-Yield Index, capping the weighting of any single issuer at between 5-10%. Behzad Mansouri, v.p. portfolio strategy group, says the question is being investigated because of the potential downgrade to junk status of Dutch telecom operator KPN. Mansouri notes that this is important because a KPN rally would cause high-yield investors benchmarked off the index to significantly underperform the index. He says that with outstanding paper worth roughly $5.96 billion last week, KPN paper would account for 33% of the index. Such a percentage would dwarf the current leader, Marconi, which was still being added to the index but was expected to comprise close to 5%. "There has been a good deal of investor concern about this question," he says."Many of them are limited as to how much they can invest in a single issue."

Dealers estimate that $150 million of Xerox paper has changed hands over the past two weeks in the mid-80s range on news of the company's third-party financing agreement with GE Capital. Deutsche Bank is rumored to be active in the name, although officials there would not confirm their position. Deutsche Bank has put a $500 million credit for Xerox on hold as the financing agreement with GE Capital brings in $1 billion (LMW, 9/20). The company has also done asset sales and new product offerings to improve its standing.

Melbourne, Australia-based BHP Billiton took advantage of a higher rating from Standard & Poor's to unify its credit lines and push payment rates way down on its $2.5 billion multicurrency revolving credit facility. The improved rating followed the merger of Australian company BHP and London-based Billiton. The merger closed on June 30, to create a multi-national mining company with a single A rating, whereas BHP had a BBB rating, explained Francis McAllister, director of investor relations for BHP in the U.S.

David Ostro, assistant treasurer at Parker Hannifin Corporation, was working the phone in his Cleveland, Ohio, office on the morning of Sept. 11 trying to wrap up his company's first syndicated bank credit. Because of the time-sensitivity of certain documents, the company needed the deal completed that day and was closing in on that goal when the first hijacked plane struck the World Trade Center. "Half the banks were already signed on when the attack happened, before the whole world changed," Ostro said.

Vancouver-based Intrawest, a developer and operator of ski and golf resorts, has received a $300 million, three-year credit facility that should fulfil its needs, despite dim prospects for the leisure industry. Stephen Forgacs, manager of investor relations, said, "Intrawest is fairly unique in the resort industry, since 80-85% of business arrives by car." The downturn in the economy has so far not hit Intrawest, he believes, with figures for pre-sale real estate already hitting 80% of analyst's expectations for the fiscal year.

Two deals for sports teams are getting ready to come off the bench, but they may be playing in front of a tough crowd. Bankers and analysts say a looming recession and an increasing reliance on corporate money may present challenges for teams looking to build stadiums or consolidate debt. Bankers specializing in sports finance said teams and sports groups may have to pay up to get deals done. A deal for the Detroit Tigers has been slogging through the market since July. It was repriced with a 3/8% increase and may have to go up another 1/8%, one banker noted.

Bank One has suspended all lending to leveraged buyout firms operating in the middle market pending further review, a well-placed LBO official told Corporate Financing Week, an LMW sister publication. Tom Kelly, spokesman at Bank One, had no comment. Bank One and other lenders have made clear the fact that they will be much more selective in the types of loans they will make, and there is growing concern among leveraged buyout firms about the middle market. General Electric's pending acquisition of Heller Financial, another major lender in the middle market, is adding to the anxiety. "There aren't that many lenders in the middle market like Heller, so we're losing one more player," said one LBO partner.

Barclays Capital has hired Eileen Murphy to develop a global collateralized debt obligation underwriting business. Murphy, the ex-global head of CDOs at Chase Securities, says she will be looking at hiring four to six people as soon as this week, and is considering a few names within Barclays. Within a year, she plans on doubling this number. She hopes to have underwritten Barclays first deal within two months, followed by at least one other transaction six months from now.

BNP Paribas' $300 million letter of credit deal for Aliso Viejo, Calif.-based Fluor has been oversubscribed despite the disruptions to the market since it launched on Sept. 7. A banker familiar with the credit said it is unlikely to be upsized before closing on Wednesday. Fluor is an engineering and construction company that designs, builds and staffs offices.

Bank of America is in the market with a $130 million credit for Denver-based MarkWest Hydrocarbon. David Wright, director of investor relations, said the loan will finance the acquisition of Leland Energy Canada and Watford Energy, both based in Calgary, Canada. Initially, to finance the acquisitions, MarkWest considered using convertibles, but then B of A offered to do the whole thing, Wright said. "This is great, as a big part is revolver," he said. The debt carries a rate of just over 2% over LIBOR, which Wright explained is less costly than the rate on a convertible deal. The credit is split into three tranches, a $55 million 26-month revolver and a $35 million four-year revolver, priced at LIBOR plus 2 1/4 % and a $40 million term loan "A" that carries a spread of LIBOR plus 2 1/2 %.

Charter Communications' bank debt traded down to 96 1/2 , which had softened about a point and a half, on the combination of a weakening broadcasting sector and news that the company's ceo is resigning. An estimated $5 million traded, but buyers and sellers could not be determined. In a Sept. 25 press release, the company announced that Jerry Kent would not extend his employment. The cable company is based in St. Louis, Mo.