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Triad Hospitals downsized its $1.4 billion acquisition credit to $1.2 billion after choosing to upsize its bond piece, as market conditions proved more favorable in the bond market than in the pro rata market. Burke Whitman, cfo, explained that the company decided to move a piece of the "A" tranche into the "B" and increase the bond offering to respond to very strong institutional and high-yield demand. "The 'B' piece and bond piece were so significantly oversubscribed that we had the nice problem to have, which is the challenge of allocating among loyal, repeat investors," he explained.

Moody's Investors Service upgraded Enterprise Products Operating L.P.'s senior unsecured debt ratings to Baa2 from Baa3, reflecting the increased scale of operations and strong market position in the Gulf Coast region. Enterprise's operating capabilities and growth opportunities have been significantly enhanced by the recent acquisitions of Acadian Gas and interests in four Gulf of Mexico natural gas pipelines.

Morgens, Waterfall, Vintiadis & Co. is winding down its approximately $600 million distressed debt fund following the departure of the portfolio's lead managers. According to LMW sister publication, Foundation & Endowment Money Management,Stephen Ledoux and Neil Augustine have left Morgens, Waterfall to join investment bank Rothschild Inc., where they will advise creditors and debtors during bankruptcy processes.

Nextel Communications' bank debt continues to trade up, as dealers say the credit tends to dodge problems that plague other telecom names. Nextel's hefty $7 billion deal and credit reputation has helped the paper stay liquid, and a convertible deal last week has bolstered investors. Levels on the bank debt firmed up to 95 3/4 last week, up from a recent low of 92. There were several small pieces reportedly traded. A company spokeswoman did not return calls.

A massive incomprehensible juggernaut rushing down on them too fast with too many hidden parts is how even the most sophisticated banking institutions were reading the Basel Committee second capital accord when the deadline Basel set for commenting on it expired last Wednesday. Despite the May 31 deadline, an official of the American Bankers Association said last week that ABA would not be ready with comments on the incomplete draft Basel had put out until mid or late June and suggested October as a target for more definitive comments on what ABA's members think of the completed draft.

As happens every year, Street bond players blamed last week's thin trading on the fact many buysiders were hunkering down to prepare for the annual Chartered Financial Analyst exam to be held Saturday. Joining in the fun was a spokesman for the Association for Investment Management & Research, a.k.a. the Association for Ignoring Marriage Responsibilities, who had his best material ready to roll. Have you heard the one about the test-taker who chose to use the six hour test to discuss his summer vacation plans? He hadn't put in the requisite 250 hours of studying and had to do something to fill the time, since he'd told his boss, who was in the seat behind him, that he been pulling all-nighters in order to prepare.

Moody's Investors Service has assigned a B1 rating to the $4.5 billion in bank facilities for Toledo, Ohio-based Owens-Illinois, Inc.'s subsidiaries. Christophe Razaire, v.p. senior credit officer for Moody's, said, "The lenders have pretty good collateral coverage, substantially covering the loan." The loan rating is therefore one notch higher than the senior implied rating, which has been downgraded based on the likelihood that free cash flow available for debt repayment will remain thin over the medium term. Future deterioration of free cash flow arising from payments over asbestos litigation could place further pressure on the ratings.

Miller Industries Inc., the world's largest vehicle recovery and towing company, has secured a new credit facility with much lower spreads than on its previous loan. Bank of America and CIT Group's business credit division are arranging the $118 million refinancing, expected to close in June.

Following a good reception in the institutional arena, Rite Aid Corp.'s four-year, $1.9 billion credit is making the retail rounds. Citibank, J.P. Morgan Chase, Credit Suisse First Boston and Fleet Retail Finance lead the deal, which has already received more than $1 billion from the agent round and institutional lenders. A banker eyeing the credit said that the deal is doing well considering it has what he considers to be high leverage and a somewhat shaky story. Commitment fees are fairly tight, considering the bank debt traded at discounted levels, he added. "The leads could get the institutional guys to step up for the term piece, though," he noted. Rite Aid officials did not return calls.

Fleetwood Enterprises will close a $260 million credit facility by mid-June, replacing three facilities currently in place. The deal breaks down into a $230 million, three-year revolver and a $30 million, one-year term loan. Boyd Plowman, cfo, says the company wanted to roll up its outstanding lines. "We wanted to get the majority of our borrowing in one facility because it offers consistent covenants," he said. Fleetwood Enterprises, based in Riverside, Calif., is a retailer of manufactured houses.

Heller Financial and Bank of America are looking for commitments for a $200 million revolving credit for Woodland Hills, Calif.-based Unova Inc. A spokesman for the company, which manufactures industrial technology products, including barcode scanners and wireless network applications, noted the firm is looking at a number of financial options. The previous loan arranged in February was a $400 million, short term, nine-month financing with J.P. Morgan Chase, according to Capital DATA Loanware. It could not be determined why Morgan Chase is not leading this deal or whether it will participate. The spokesman declined further comment including any reference to the banks involved.