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Deutsche Bank last week launched syndication of a three-and-a-half-year, $417 million credit for Commonwealth Brands, America's fifth largest cigarette maker. The deal is already 75% subscribed with institutional accounts, said a banker familiar with the credit. Officials at Commonwealth declined to comment.

Eileen Murphy, the former global head of CDOs at Chase Securities, has set up a consulting shop providing crisis management and structuring advice to both collateral managers and bankers. Murphy, who resigned from Chase in January after its merger with J.P. Morgan, is running CDOs Unlimited as she pursues a possible return to the Street. In addition to her client work, Murphy is, as she puts it, wrestling with technology: "I just about have my web site completed." Prior to her stint at Chase, Murphy was a managing director and co-head of the credit derivative products group at Moody's Investors Service. She began her career at Seward & Kissel in New York as a bankruptcy attorney.

The Allstate Corporation closed $1.1 billion in aggregate credit facilities on June 8, switching leads and opting to refinance six months early to beat the end-of-the-year rush, said Joe Garnett, treasury director. The company went out to bid for the deal and chose Bank of New York as its lead. Chase Manhattan Bank and J.P. Morgan were co-leads of the original deal and did bid for the new facility. "[Bank of New York] offered a more attractive syndication strategy, pricing, and up-front fees," said Garnett. "We knew going into this process that the market is much tougher than it was five years ago."

Riviera Beach, Fla.-based AmeriPath has expanded its revolver and added two new banks to its lending group. Citibank has committed $37.5 million and Credit Suisse First Boston $15 million to increase the revolver from $230 million to $282.5 million, noted Gregory Marsh, cfo of the cancer diagnostics, genomic and related information services firm. The increased loan will be used to further the presence of the company and for general working capital. "An increased loan was the cheapest way of raising capital," said Marsh, adding, "a minimal charge of less than $100,000 was incurred with no rate change."

Nextel Communications' debt has resurfaced at 91-92, after dipping into the 89 range two weeks ago. About $10 million traded last week, and dealers said all eyes are on the company's levels, which have recently been dragged down with other telecom credits. "Because so many are in Nextel, people get concerned when they think the market value is dropping," a dealer said. "There's no trend right now. The levels are just waffling." Another dealer said buyers see the paper as relatively cheap. "It's bouncing around, finding its support level," he said. "People feel like it's a little cheap and oversold."

A $2.5 million chunk of American Tower Corporation's term loan "B" traded at 99 1/4. The credit then softened to 99 in a subsequent trade. Dealers expect tower credits to trade down in sympathy to cellular names like VoiceStream Wireless. Still, some traders anticipate the credit will trade up and that market players are moving in on it while it's cheap. "It should go up; it's not a bad credit," a trader noted. Another dealer said tower sector credits are starting to dismantle along with the rest of the telecom names. "They're getting lumped in with telecom," he said. "Like Crown Castle, guys considered rock-steady have no bid out for them."

Chateau Communities has tapped Bank One to lead a $320 million bridge loan to fund the Greenwood Village, Colo.-based real estate investment trust's $570 million acquisition of CWS Communities Trust. The 364-day facility is priced at LIBOR plus 120 basis points, a Bank One official said. Bank One acted as sole lead arranger and administrative agent and was chosen because of a previous relationship with the REIT, he added. Chateau agreed to purchase Security Capital's 94.1% stake in the manufactured-home developer earlier this month. Tamara Fischer, cfo and director of investor relations, did not return calls by press time.

Banc of America Securities and Citibank are in the market with a $1.25 billion best-efforts refinancing credit for Las Vegas-based hotel and casino operator Mandalay Resort Group. Les Martin, v.p. and chief accounting officer, said the company liked the current market climate and decided to refinance. "The old line, led by B of A, matures a year from now and Mandalay does not want to go to the wire," he said.

Paul Greenberg, the head of high-yield research at Bear Stearns and a 10-year veteran of the firm, as well as a multi-year member through 1999 of the Institutional Investor fixed-income All America team in forest and paper products, has announced his retirement, according to a Bear Stearns executive. He says that Greenberg gave his departure date as "mid-July at the latest." While Greenberg did not indicate why he made this choice, he said little about his future plans to his colleague, other than to note "that he would take some time off, and then probably wind up on the buy-side."

Henry Schmeltzer, executive director of structured credit trading, has joined Merrill Lynch as head of structured credit products for Europe, Middle East and Africa in London. The position is part of an expansion to the team, according to a spokesman, who declined further comment.

Australia Envestra Victoria plans a roadshow next week to market a A$250m issue of capital indexed bonds and floating rate notes credit wrapped by monoline insurer Financial Security Assurance (FSA). Fitch, Moody's and Standard & Poor's have rated the issue triple-A.

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