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Approximately $30 million of Polaroid's bank debt traded in the low 80s over the week after the company received a covenant waiver from its bank group. Dealers said the debt has traded in the low 80s for a while and that there were no dramatic swings. Some noted the company's best hope is to be sold, while others are skeptical that it will happen. "The worst case is that they go on and try to exist with no burning cash," a dealer said. "The numbers are coming in worse. [The market] is hoping the company does the right thing, being it sells itself. Either that or it figures out a way to pay off banks instead of trying to extend itself." Polaroid is based in Cambridge, Mass. Calls to a spokeswoman were not returned.

There was a failed auction for Pillowtex's bank debt held last Monday, when bids came in a few notches short of the asking price. Bank of Nova Scotia, an original lender, was rumored to be the seller. A bank spokeswoman declined to comment on any trading. Dealers said the paper was offered in the mid-30s, but that bids probably came in around the low 30s. With the textile industry struggling on a weaker economy, the paper is described as a hard sell. "Textiles are just not doing well, and the company's in bankruptcy," said a trader. The Dallas-based company makes home textiles.

Market sources said Banco Santander Central Hispano brought a roughly 1.4 billion synthetic balance sheet collateralized debt obligation vehicle to market--the first synthetic balance sheet deal using a portfolio of leveraged Spanish loans as collateral. The deal reportedly closed at the end of last month and allows Banco Santander to remove underperforming Spanish corporate loans off its balance sheet. Officials at the bank did not return calls by press time.

Excel Legacy has obtained a $100 million credit from FleetBoston Financial. The bank will be looking for three to four lenders to round out the syndicate and commit $15-20 million apiece, according to Gary Saiban, chairman, president and ceo. About eight institutions attended the bank meeting, which was held in San Diego last Wednesday, noted Jeffrey Warwick, senior banker at Fleet. Excel, a San Diego-based retail real estate company, may expand the size of the line if it is oversubscribed, Saiban added. Commitments are due in two to three weeks.

A 500-700 million structure backed entirely by mezzanine loans is being touted as an innovative cross between a collateralized debt obligation and a leveraged fund. The deal taking shape in Europe is unique in that its leverage is less than in a traditional CDO, but higher than a straight fund, sources told BondWeek, an LMW sister publication. The vehicle, AIG Mezzvest Funding, is scheduled to hit the European market in the next few weeks, according to syndicate officials in London. It has not been decided if the product will be pitched as a typical cash flow arbitrage CDO or a leveraged fund. The collateral manager is AIG Mezzvest, in London.

J.P. Morgan and Congress Financial, First Union's asset-based finance unit, are preparing a $375 million secured credit facility for Bensalem, Pa.-based Charming Shoppes. John Sullivan, controller for the women's plus-size apparel chain, said the credit backs the acquisition of Lane Bryant for $335 million. Congress provides Charming Shoppes existing line of credit and J.P. Morgan Securities acted as financial advisor in the transaction. Sullivan declined comment on pricing, except to say it will be similar to the spread on the existing line. Timing of the bank meeting could not be ascertained.

Extended Stay of America is set to close a $900 million credit facility by the end of July, replacing an existing $1 billion deal. Gregory Moxley, cfo, says the company chose to split the new financing between the credit facility and by issuing $300 million in senior subordinated notes. "This balances out our capital structure and gives us more fixed-rate debt," he explained.

Secondary market players amused even themselves last week as they bantered and chased a mammoth $150 million trade of Crown Cork & Seal bank debt that never actually happened. "It's all total bull," a dealer said of the trade. "I have the paper offered to me right now, but it hasn't traded. There's a huge piece that everybody wants to trade and supposedly everyone's trading it. It's kind of funny to watch."

Michael Jordan, a senior corporate bond salesman and managing director at Merrill Lynch, left late last week and will be working in a similar capacity at Deutsche Bank Securities in New York. Officials close to the situation say Jordan will not be replaced at Merrill, and his accounts will be turned over to current sales executives. Jordan reported to Frank Corcoran, managing director and head of investment grade sales in New York, who declined comment. At Deutsche Bank, Jordan will report to Tony Britton, managing director. Britton referred calls to a spokesman, who declined comment. Jordan could not be reached for comment.

Bank of America is in the market with a new $70 million facility for Baltimore-based MedStar Health, a not-for-profit health care system located in the mid-Atlantic region. The facility comprises a $10 million revolver and $60 million term loan; both are 364-day and secured by unrestricted cash and marketable securities.

Rittenhouse Financial Services has hired Roger Early, former ABS portfolio manager at Delaware Investments, as its new v.p. investment-grade portfolio manager and market strategist. Early will report directly to John Waterman, chief financial officer of Rittenhouse, a Radnor, Pa.-based firm affiliated with Nuveen Asset Management. Based in Chicago, Nuveen has $61 billion under management.