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Franklin Templeton Investments increased its latest collateralized debt obligation to $550 million--Franklin Templeton CLO II--before pricing notes to fund the vehicle two weeks ago. The vehicle was originally slated for $400 million at the beginning of its ramp-up period roughly six months ago. But, as attractive collateral became increasingly available, the size of the vehicle was increased. Chauncey Lufkin, portfolio manager, said 90% of the collateral, which comprises 95% leveraged loans and 5% high yield bonds, has been ramped up and the fund is currently in the process of investing the balance. He said the firm likes to ramp up as much as possible prior to issuing the notes so that it has a longer time and can be more selective about credits.

New York-based investment fund Trimaran Capital Partners is in its final investing phase to complete a $460 million collateralized loan obligation, the fund's first cash flow arbitrage vehicle after two market value deals. Market officials said the vehicle will be invested 100% in U.S. leveraged loans and is in the process of completing its final ramp up phase. The deal is a traditional cash flow arbitrage vehicle, which profits from positive spread differentials between its assets and its liabilities. Officials said the fund is using a credit derivative to swap risk associated with one group of assets. Further information regarding the swapped out credit risk could not be ascertained by press time. Officials at Trimaran did not return calls by press time.

UNOVA, the troubled supplier of mobile computing and wireless network products, has secured two asset-based credit facilities with a capacity of up to $275 million. The three-year agreements replace a $400 million short-term financing arranged in February with J.P. Morgan Chase, that was set to expire in November, explained David Brooks, director of investor relations at the Woodland Hills, Calif.-based company, which also supplies manufacturing systems for the auto and aerospace industries.

A $1.5 billion bond offering by U.S. Bancorp (A1/A+) last Thursday was sold so quickly by co-lead managers Credit Suisse First Boston and Lehman Brothers that it prompted rumors that a single player purchased nearly $1 billion of the deal, an unprecedented size for a corporate bond trade. As Wayne Schmidt, a senior portfolio manager at Advantus Capital Management in Minneapolis puts it: "I got up for coffee after placing an order and about two minutes later I was told the deal was done." He adds that although deals can get placed quickly, "getting it done in 15 minutes is ridiculous." His firm did not

Waste Management closed a $2.5 billion facility in late June, a deal which breaks down into a $1.75 billion five-year revolver and a $750 million 364-day term loan. The credit replaces a $2.9 billion deal that was due to expire. Ron Jones, v.p. and treasurer, said the company opted to go with a smaller deal since it has unused credit lines. Houston-based Waste Management is one of the leading trash haulers in the country.

Credit Suisse Group has agreed not to hire any Morgan Stanley employees until mid-September, a move widely seen as a condition of the severance package under which John Mack, president and coo, left Morgan before joining Credit Suisse First Boston as chief executive. Human resources managers at CSFB sent a copy of the agreement, which covers employees at every level at Morgan, to recruiters last Monday. Mack did not return calls. Press officers at CSFB and at Morgan Stanley declined comment.

A collapsing stock market in Taiwan did not deter investors from buying 200m shares late last week in Yageo Corp. JP Morgan arranged the transaction and was delighted with the outcome. "Getting the deal done in this environment is a fantastic achievement," said Michiel Steenman, head of ECM for Asia Pacific at the bank.

Facing up to volatile market conditions, Korean oil refiner and petroleum marketer LG Caltex successfully tapped strong US investor interest to support its $300m 10 year global bond issue. The Euro 144A deal had to be priced against an alarming background of strong volatility in emerging market spreads due to Argentina's problems. It was also competing against PCCW-HKT's jumbo global issue that was being marketed at the same time. These factors did not leave the deal unscathed, with spreads widening from estimates of 260bp-270bp over US Treasuries last week.

The Port Authority of Singapore (PSA), the world's busiest container port operator, has shelved plans for its IPO. The news is disappointing for DBS Group, Morgan Stanley and UBS Warburg, which have the mandate for the transaction. The float was due to be one of the largest of the year in Asia. "All of us are familiar with what is happening: the IPO market is dead," PSA chairman Yeo Ning Hong said in a press conference. Singapore's benchmark Straits Times stock index is down 14% so far this year.

New Zealand Moody's has changed the outlook of Carter Holt Harvey's rating of Baa2 to negative from stable, while placing the company's P2 short term rating on possible downgrade. The agency said the actions were prompted by the company's weakened operating results since the fourth quarter of 2000.

Australia Commercial property investment vehicle AMP Office Trust (AOT) has agreed to buy Sydney's Goldfields House for A$182m from AMP and will issue 124m shares to AMP Life, an arm of AMP, at A$1.17 per share, or A$145m, and borrow A$50m to pay for the 27 floor property. The purchase will bring AOT's market capitalisation to more than A$1bn.

The IPO of Euro-Asia Agricultural (Holdings) closed its books more than 75 times covered on the retail IPO and more than 12 times covered on the institutional offer. But this did not prevent the shares wilting 11% yesterday (Thursday) on the first day of trading. They were quoted at HK$1.33 early yesterday afternoon.