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Deutsche Bank's innovative financing structure for Premcor Refining Group seemed to strike the right note with investors as the deal filled last week and was set to be upsized. A banker familiar with the credit said that total commitments should be $650 million and the revolver will almost certainly be upsized from $350 million. The $150 million term loan will possibly also be increased, depending on the math, said the banker. He was unable to say by how much at this stage or name the institutions committing, as allocations have not yet been set.

J.P. Morgan is set to lead a $680 million credit for Advance Auto Parts to fund the acquisition and merger of Discount Auto Parts and refinance existing credit lines. Credit Suisse First Boston and Lehman Brothers are co-arrangers on the loan. A banker familiar with the deal noted the old $465 million loan, arranged in 1998 led by Chase Manhattan Bank and Donaldson, Lufkin & Jenrette, had a six-year maturity.

Laidlaw is in talks with several U.S. and Canadian banks about arranging a $250 million revolving credit facility and a $500 million high-yield bond issue for when it emerges from Chapter 11 bankruptcy. Geoff Mann, v.p. and treasurer at the Burlington, Ontario-based transportation company, said Laidlaw has obtained a $200 million, two-year secured revolving debtor-in-possession (DIP) facility that will provide liquidity while the company is in court proceedings. The plan has not yet been voted on to put in place the exit facility, but it is expected to be a syndicated $250 million revolver, he added, declining to name the potential banks to lead the facility or bond offering. Laidlaw intends to exit from bankruptcy proceedings within six months to a year, he noted.

Laidlaw is in talks with several U.S. and Canadian banks about arranging a $250 million revolving credit facility and a $500 million high-yield bond issue for when it emerges from Chapter 11 bankruptcy, according to BW sister publication Loan Market Week. Geoff Mann, v.p. treasurer for the Burlington, Ontario-based transportation company, said Laidlaw has just obtained a $200 million two-year secured revolving debtor-in-possession facility that will provide liquidity while the company is in court proceedings. The plan has not yet been voted on to put in place the exit facility, but it is expected to be a syndicated $250 million revolver, he added, declining to name the potential banks to lead the facility or bond offering. Laidlaw intends to exit from bankruptcy proceedings within six months to a year, he noted.

Traders said HSBC bought a $25 million piece of Federal-Mogul's $1.75 billion outstanding bank debt from Bank of America in the 67-68 context last Monday--a few points higher than the mid-60 level the market saw last month for the credit. Last month, investors were reportedly pulling back cautiously, anticipating a Chapter 11 filing by the company, dealers said. Since last month, investors are getting more comfortable with the idea that the company may not file for Chapter 11 immediately as it hasn't yet made a move after much speculation last quarter. Calls to James Fisher, spokesman at Federal-Mogul, were not returned by press time. Calls to officials at HSBC were not returned by press time.

Hollister tapped First Union to lead an $80 million refinance credit that rolls up a series of uncommitted lines from various lenders. William Sauerland, treasurer, described syndication of the credit as a "formalization of all of our uncommitted lines." He explained the company's existing $80 million of available debt was previously split between numerous lines of unfunded 364-day revolvers, led by a handful of separate banks. "Given changes in the market, banks have gotten a lot smarter than they used to be with their asset-allocation models," he commented.

Morgan Stanley has unified its high-yield, investment-grade and emerging markets fixed-income research and trading coverage of a number of "crossover" companies--credits that shift back and forth between high-grade and high-yield. Stephen Penwell, global head of credit research atMorgan Stanley, says the firm is looking to capture an area of the market that it had previously overlooked. The firm sent out its first crossover research piece, on British communications equipment-maker Marconi, earlier this month.

Nomura Securities International is reportedly taking a novel turn on a $6 billion, one-year line of credit for Bayerische Landesbank, accepting commercial-, asset- and mortgage-backed securities as collateral, according to BondWeek, an LMW sister publication. Current and former Nomura fixed-income executives said the agreement called for Nomura to provide the 364-day revolver for a fee of two basis points, or $1.2 million.

Continuing the trend of loans being offered at an original discount in syndication, Credit Suisse First Boston's deal for The Ackerley Group was offered at a cut-price 97 to investors two weeks ago, according to a banker following the deal. After the market was offered the credit at a discount, the $120 million loan was oversubscribed. The discount will cut into the net proceeds of the deal rather than being covered by the bank through fees. Both the $20 million revolver and the $100 million, five-year term loan "B" were discounted in syndication. Pricing was LIBOR plus 33/ 4% and 4% over LIBOR, respectively, for the tranches. The revolver also carried a jumbo 11/ 2% commitment fee to facilitate syndication.

Adelphia Communications is shopping for banks to be co-arrrangers on the $2.5 billion credit that is likely to go into syndication in September. Lea banks First Union, Bank of Nova Scotia and administrative agent Bank of Montreal, are looking for more underwriters to fill out the deal. A number of market players are said to be eyeing the slots, but no names could be ascertained. Adelphia's loans have traditionally carried pricing around LIBOR plus 2 3/4 %, according to analysts who follow the company. The loan will be used to refinance existing debt. Officials at the lead banks were either unavailable for comment or could not be reached by press time. Karen Chrosniak, director of investor relations, did not return calls by press time.

American Greetings paid the price of refinancing in a difficult market, as pricing was flexed up and its term loan offered at a discount in syndication. David Poplar, investor relations manager, noted the senior secured credit facility consists of a $105 million, 364-day revolving facility, a $120 million, five-year revolver and a $125 million, five-year term loan. He declined to provide pricing details, but said that the term loan was offered at a discount in syndication to entice investors. Bankers noted that pricing was LIBOR plus 3% on the pro rata and LIBOR plus 41/ 2% on the term loan "B" after a 1% flex upwards. The term loan was also offered at an original issue discount of 97. National City Bank, Goldman Sachs and KeyBank led the deal.