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Bart van Dooren, head of capital markets

Louise Herrle, vice president and treasurer

Stephen Abrahams, chief, capital markets division

The global funding team, international finance department

Allegiance Telecom drew down $350 million of its $500 million credit facility on Sept. 13, hoping to cash in on favorable rates. Thomas Lord, cfo and executive v.p., explained that the company determined interest rates were at their best in 20 years. The drawdown just happened to coincide with the World Trade Center attack on Sept. 11, but the transaction managed to go through two days later.

Citicorp and Salomon Smith Barney have placed on hold the proposed $175 million credit facility for Amtran, the parent company of American/Trans Air, as credit officers within banks nervously eye their loan exposures to the airline industry. Kim Wick, manager of investor relations at Amtran, said that last Wednesday the banks sent a letter to Amtran requesting information regarding the business condition, operations and properties of the Indianapolis-based company. American Trans Air flies mostly in the U.S.

Rapid City, S.D.-based Black Hill, an energy and communications company, has closed a $400 million revolving credit, after initially requesting $300 million. The credit facility is the largest financing in the company's history, said Dale Jahr, director of investor relations. Previously Black Hill had a couple of short-term credit facilities that it was looking to extend or renew as the old lines approached maturity. These lines totaled $290 million, but Black Hills is in a cycle of growth that requires more medium-term credit, hence the adoption of a $200 million, three-year tranche, in addition to a $200 million, 364-day facility. The facility was oversubscribed beyond $400 million, said Jahr, and Black Hills decided to increase the initial requested amount.

BANK ONE and Union Bank of California launched deals for Coraopolis, Pa.-based DQE Capital and its unregulated subsidiary Duquesne Light last week. According to bankers familiar with the situation, the bank meeting was done via a conference call and IntraLinks, a secure online environment for project and document management used for large leveraged capital markets transactions. The deals were originally set to launch last Thursday at the Millennium Hotel in downtown New York. IntraLinks is a secure meeting room on the Web, where project and relationship management teams schedule, conduct and manage business interactions online.

Bankers said Deutsche Bank's planned $500 million credit for Xerox is currently on hold following the company's latest $1 billion financing agreement with GE Capital. Deutsche Bank was expected to bring the credit to market this month in an effort to provide the company with added liquidity to the $2 billion in cash the company has on hand. Market sources said Deutsche Bank is sitting on its commitment as the company determines whether or not it will need the additional capital. "This has nothing to do with the events of Sept. 11," one banker clarified. Xerox CFO, Barry Romeril, did not return calls. Kevin McKee, spokesman for Xerox, declined to comment. Officials at Deutsche Bank declined to comment.

DRS Technologies chose First Union over Mellon Bank to lead its $240 million deal late last month to fund an acquisition of the Sensors and Electronics Business of the Boeing Company. The deal replaces a Mellon Bank-led $160 million credit, which was paid down. "We're doing an acquisition and needed the financing," said Rich Schneider, cfo and treasurer. "As the company grows, we needed to move on from Mellon, since we were unsure of their commitment [to larger financing]. First Union is aggressive," said Schneider. DRS is a defense technologies company based in Parsippany, N.J.

The roadshows for Goldman Sachs' and Wells Fargo's deal for PETCO Animal Supplies, the Goldman and First Union deal for Relizon, and the Credit Suisse First Boston and J.P. Morgan deal for Collins & Aikman are reportedly set to continue in the coming weeks after being postponed. A banker involved in the Relizon and PETCO deals said, "We do want to press ahead with things." PETCO was in the middle of a roadshow and Relizon was about to launch one during the week of the terrorist attacks in New York and Washington. Pricing will remain the same on both deals, said the source. The banker could not provide a timeframe for the resumption.

J.P. Morgan has laid off two players in its collateralized debt obligation group as part of the firm's overall staff reduction measures. Douglas Lucas, head of CDO research, and Dwayne Brown, head of CDO syndications left the bank two weeks ago, though Lucas said he's working part time in the CDO area. He declined further comment. Brown could not be reached for comment. Lucas reported to Chris Flanagan, head of ABS research, who verified Lucas' departure and in terms of a replacement said, "the firm will be operating with existing staff." Brian McDonald, head of ABS syndications, did not return calls, but another banker on the syndications desk confirmed Brown's departure. Market sources speculated that downsizing in the group is a function of the Chase Manhattan Bank merger with J.P. Morgan.