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Despite tough conditions in the loan market, Bank of America has stayed with Credit Acceptance Corp. to replace a $115 million maturing credit facility with an upsized $120 million loan. Douglas Busk, cfo, aware of pullbacks in the loan market, said "B of A [is] trying to better allocate resources to serve relationships." Busk added that, "Credit Acceptance has done five securitizations in the past and is likely to pursue them in the future. One of the things that improves relationships is other business." Busk said securitizations are typically used to pay down the debt on the credit facility.

Banco Santer Central Hispano is working on a synthetic balance sheet deal to remove an estimated 1.4 billion in Spanish corporate credits from its balance sheet. Bankers close to the deal said the bank launched the vehicle early in the month and Deutsche Banc Alex. Brown, underwriter for the transaction, is looking to price the notes for the vehicle next week. BSCH will reportedly retain the roughly 26 million equity tranche and the 1.146 billion senior subordinated tranche of the deals structure. Officials at BSCH declined to comment.

Citigroup is running out of time to arrange a syndicate for its $350 million credit facility for White Plains, N.Y.-based Metromedia Fiber Network, according to bankers familiar with the deal. Citigroup has less than two weeks before its letter of commitment expires and it is left carrying the entire loan. "Citigroup is on the hook for the whole thing. They've been unable to find any other banks to come in on it," one banker said. Citigroup has been working to arrange the syndicate since January. A loan syndication official at Citigroup declined to comment.

ING Capital Advisors reportedly priced the notes for its 350 million cash flow arbitrage CDO last week, according to bankers close to the deal. The deal represents the company's first deal funded completely with euro-denominated liabilities and one of a handful of traditional cash flow arbitrage Edenominated deals in the market this year. Officials at ING Capital Advisors did not return calls by press time. Goldman Sachs was underwriter on the offering.

Market players are looking forward to the launch of Bank of America's roughly $200 million refinancing credit next week for Apria Healthcare Group. The new loan will reportedly pay down roughly $200 million in subordinated notes the company has outstanding and maturing in November 2002. Officials at Apria Healthcare did not return calls. Structuring on the new deal could not be determined by press time.

The target date for legislation to amend the Gramm-Leach-Bliley Act to permit some bank cross-marketing under GLBA's merchant banking provisions is shortly after Labor Day, industry sources said last week. The competitive handicap the current cross-marketing provisions give banks versus rival insurance companies has some members of the industry resolved to try for Capitol Hill action, even though there is a risk of it backfiring if lawmakers start to make other changes in GLBA that banks don't want.

Bank of Novia Scotia and SunTrust Bank have stepped up to join Bank of America on Media General, Inc.'s $1 billion refinancing. Sun Trust is documentation agent, Scotia is syndication agent and B of A is lead manager for the credit launched June 5. The Richmond, Va.-based media conglomerate is involved in publishing, broadcasting and newsprint.

Bankers said last week an attempted carve out by J.P. Morgan Chase to create a $150 million term loan "B" from Interstate Bakeries Corporation's $800 million credit, will provide a valuable indicator as to how far institutions are prepared to go to attain paper. Priced at LIBOR plus 2 1/4% with 15 basis points offered upfront, bankers are curious to see if investors blink, as the levels are tighter than what the market has been getting.

Two Goldman Sachs-led credits backing Leonard Green & Partners-sponsored deals for veterinary companies are taking another walk around the block after weak syndications. Veterinary Centers of America is conducting informal meetings with institutions to help Goldman Sachs re-syndicate a deal that Goldman led for the company last year and ended up holding most of. Goldman and Wells Fargo are believed to be coming back to market also with a $350 million deal for Petco Animal Supplies, a credit that closed last October for another Leonard Green buyout.

Corporates have never had it so good in the Eurosterling market. Changes in the composition, attitude and regulation of the investor base along with challenging arbitrage conditions for triple-A borrowers this year have created a supply/demand imbalance that companies have been only to keen to rectify. Jo Richards reports on how the credit market has overtaken the Gilts market in size and what the future holds.