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RCN Corporation's bank debt in a $5 million trade last week dropped to the high 60s from an offer of the mid-70s. Dealers say competition from other providers may be straining the company's profits, despite offering services at prices cheaper than some competitors. "They launched their deal two years ago, and people were very optimistic about it," a trader said. "Now they're not meeting their projections, and they've built out. There's just a high level of competition." Still, dealers expect the cable industry will stay in focus. "Cable television is one of the utilities," said a market watcher. "It's up there with electricity and water. No one wants to lose their MTV."

Credit Suisse First Boston and Bank of America last Friday launched syndication of a $520 million refinancing credit for Houston-based Lyondell-CITGO Refining. The one-and-a-half-year loan consists of a $450 million term loan and a $70 million working capital facility, with all-in pricing of LIBOR plus 2%. There is also a commitment fee of 50 basis points on the working capital facility. The credit refinances a similar loan completed in September last year with B of A and CSFB, said a banker. Calls to company officials were not returned by press time.

An avalanche of small telecom trades piled up to at least $100 million in volume last week as market players continued to try to touch the bottom of the deep end with their toes. The biggest divers in distressed land were Level 3 Communications-- down to 68 after trading in the 80s just weeks ago--and 360networks, which traded at 19 late last week. The credit was trading at 97 last fall.

Ethan Heisler, director of corporate bond research at Salomon Smith Barney, and an Institutional Investor ranked second-teamer, recommend investors seek value in the bonds of double-B and triple-B smaller, off-the-run regional banks such as Sovereign Bancorp (Baa3/BBB-), Dime Bancorp (Ba2/BB) and Riggs National (Ba2/B+). He says the bonds are the safest way to pick up decent yield in the investment-grade corporate sector while avoiding blow-up risk. While there are some indications of investor interest in this paper, many portfolio managers have their doubts.

Fitch has hired Marion Silverman as CDO senior director from Motorola Credit Corporation, the securitization subsidiary of Motorola Inc. Silverman will work out of Fitch's Chicago office, but will report to David Howard, managing director, who heads the CDO rating process for the agency in New York. Howard said the move is part of Fitch's strategy to beef up its CDO division. Silverman will cover a full range of CDO transactions, including new deals, cash flow or synthetic structures. She is a long time asset-backed veteran with years of experience on the issuer's side, says Brian Gordon, another Chicago-based Fitch analyst who also reports to Howard. Calls to Silverman were not returned as of press time.

RBC Dominion Securities, Credit Suisse First Boston, Citibank and Toronto Dominion Bank are leading a C$1.905 billion bank and bond refinancing package for Quebecor Media, landing roles after a competitive bid. Bank of America and Bank of Montreal, existing lead lenders to Quebecor, reportedly bid for lead roles but fell short. Both are expected to participate in the credit. Marc Girard, v.p., treasurer for Quebecor, declined to comment on any of the banks involved in the bank deal or bond offering.

A $20-30 million chunk of Genesis Health Venture's bank debt traded around 72 this week. Levels are up slightly from the high 60s, and dealers are eyeing the credit as the company is in the process of emerging from Chapter 11 bankruptcy. TD Securities was the rumored seller, although officials there did not return calls for comment. Genesis, based in Kennett Square, Penn., owns and operates 300 geriatric care facilities. Calls to a company spokeswoman were not returned by press time.

In a market dominated by telecom activity,Global Crossing was one of the many names that took a hit last week, dropping eight points in two days. The credit sunk from 98 to 90 as about $20 million of the term loan "B" traded. A dealer noted that the credit has historically been strong, but is feeling the weight of an overloaded telecom sector. "It's higher quality leveraged, BB+ rated, but it's just fallen off the cliff as well," he said. Buyers and sellers could not be determined by press time. Bermuda-based Global Crossing is building 12 regional fiber optic networks in Asia, the Americas and Europe.

Houston-based HCC Insurance Holdings has reduced its revolving credit facility and cut back on the number of banks in its group. Stephen Way, chairman and ceo of HCC, said after a $155 million equity offering, the company had very little debt. "With alternative forms of financing available, there is no point having more than necessary and paying the fees," he noted. Way said the company reduced its bank group due to the downsizing on the facility.

Heller Financial has wrapped syndication of its $150 million asset-based credit for Somerville, Mass.-based Beacon Roofing Supply. CIT Group, GMAC, Wachovia Bank and Fleet Capital were among the nine lenders on the deal, which was sponsored by investment firm Code, Hennessy & Simmons, according to a banker familiar with the deal. David Grace, cfo of the company, confirmed that syndication closed on June 8, but referred further calls to officials at Heller.

Impath Inc. closed a $50 million senior secured credit facility earlier this month, signing a much larger deal than its previous facility partly to entice more investor interest in the company. The deal consists of a five-year commitment for a $25 million revolving credit line and a $25 million, 364-day facility. It replaces the company's $15 million unsecured deal. "It's very important for investors to know we can tap a larger credit," said Dave Cammarata, cfo. "It's always been our intention to increase our line, but two years ago we wouldn't have met our financial covenants." New York-based Impath provides cancer information and analyses with a database of 730,000 cases. The company uses technologies to provide patient-specific cancer diagnostic and prognostic information. Cammarata explained that the company needed to grow its EBITDA to be eligible for a larger line. The company's EBITDA this year is $46 million, compared to $31 million the year before, and $19 million two years ago.

Citibank's $360 million credit for Paxson Communications Corp., a broadcast television station, has already received commitments of $430 million for the $285 million "B" tranche following a bank meeting two weeks ago. Talk of a flex down is premature, said a banker.