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Credit Suisse First Boston's $3.5 billion deal for Atlanta-based energy giant Mirant Corp. has been downsized to $3 billion and has had pricing flexed upwards. Project financiers predicted that the deal would be tough, suggesting that CSFB would have to tap most of the major power finance houses to get a package of this magnitude done. Recent construction revolvers from NRG Corporation and American National Power also proved tough sells.

Morgan Stanley this Friday will launch syndication of a $900 million credit for Fort Lauderdale, Fla.-based Extended Stay America, Inc. The credit comprises a $200 million revolver, a $50 million funded "A1"term loan, an unfunded $150 million "A2," and a $500 million "B" term loan. Extended Stay is also planning $300 million in bond issuance. The credit and notes are part of a refinancing of the existing $998 million bank debt, set to mature in 2002. The company, which provides extended stay lodging, had approximately $200 million available under the old credit.

Prison Realty's bank debt notched up a couple of ticks to 94 last week in a $5 million trade. Dealers said a need for paper that isn't in the telecom sector has helped support levels, but buyers and sellers could not be determined by press time. The company is based in Nashville, Tenn., and constructs and sells prisons. It also goes by the name Corrections Corporation of America. Calls to a company spokeswoman were not returned by press time.

Nick Casesa, a senior member of Barclays high-yield sales team, left late last month to join BNY Capital Markets in Roseland, N.J. He was at Barclays for just over a year, prior to which he worked at Prudential Securities, according to an industry official. Casesa reports toChris Harrison. Casesa and Harrison declined comment on the move. Jack Flaherty, head of high-yield and investment grade corporate bond trading at Barclays, says Casesa has not yet been replaced.

Stanfield Capital Management has reportedly upsized the collateralized debt obligation it has been ramping up over the last six months from its original size of $500 million to $850 million as available collateral for warehousing has become more available. Chris Pucillo, portfolio manager at Stanfield, declined to comment. "There was great demand from investors for the deal and they could find collateral that made sense," noted one market player familiar with the transaction. The vehicle was reportedly upsized a month ago to $750 million and then once again to $850 million a few days prior to pricing of the liabilities during the last week of May.

The $22 billion Arizona State Retirement System is seeking advisors to sell its $190 million commercial loan portfolio and to do so has issued a request for proposals. The portfolio is comprises investment-grade loans for non-residential properties in the state of Arizona. CIO Paul Matson said plan officials decided to sell the portfolio because it was not diversified enough, and chose to sell the entire portfolio rather then sell the individual loans because of a lack of liquidity in the market. He added the due date for the rfps is July 16, and that plan officials expect the portfolio to be sold by the end of the year.

A $25 million piece of USG Corporation's bank debt traded last week, with some dealers early in the week pointing to Bank of Tokyo-Mitsubishi as the seller. Dealers later noted that BTM officials had been asking around about the name to determine levels but did not move any paper. A BTM official remarked, "It's a rumor. Let's leave it that way." Levels were reported at around 60 and dealers attributed the shuffling of the $25 million piece to nervousness about the company's asbestos litigation. USG, based in Chicago, Ill., makes gypsum wallboard and sheet rock.

If theBasel Committee goes ahead with its proposed operational risk-based capital requirements, the Financial Services Roundtable warned in a May 31 comment letter, banks may shift asset management and other activities out of banks and into riskier non-bank affiliates. Furthermore, it said, for another kind of risk, credit risk, bank internal models are "simply not ready for use as a regulatory capital standard."

Bank of America's pull back from corporate lending is starting to be felt in the market, as treasurers look for new leads and competitors step up for the vacated roles. J.P. Morgan Chase landed the lead spot onIntegrated Electrical Services' $150 million revolver after B of A informed the company that its lending relationship would be one of those dissolved as the bank sought to withdraw approximately $20 billion of its position in the loan market. Neil DePascal, v.p., treasurer and chief accounting officer for Integrated, said he was not aware the bank was curtailing its lending relationships until the company went to renew its facility in March. "When B of A withdrew, it allowed the others to grab the business," he said.

Commerzbank Securities is continuing the process of reorganizing its New York bond business (BW, 4/15, 11/6/00), this time by consolidating much of the management of its daily bond trading activities in the hands of Ashwin Kumar, the New York-based head of fixed-income proprietary trading, according to fixed-income co-chief Ricardo Pascoe. Pascoe says the move has yet to be announced, pending completion of a standard internal review process. To effect the shift, Pascoe confirms that management of the government and agency trading operations will be carved out from Stephen Creaturo's role as head of fixed-income trading, but he'll retain the rest of his duties. Similarly, Steven Block, the head of interest rate derivative trading in New York, will also have his management mandate shifted over to Kumar. The move will leave Kumar with oversight of all interest-rate derivative, agency, government and proprietary trading activities. Creaturo was traveling last week and could not be reached for comment. Block, when reached at his desk, declined comment. Kumar, who declined comment as well, reports to Pascoe.

Credit Suisse First Boston last week launched syndication of a $175 million asset-based revolver for Antec Corporation. The three-year loan is grid priced at LIBOR plus 31/4 %, with a commitment fee of 1/2%. CIT Group is administration agent. The loan backs Antec's proposed acquisition of Nortel Network's ownership interest in Arris Interactive L.L.C., and working capital needs following, said Jim Bauer, head of investor relations. The acquisition is awaiting approval from the Securities and Exchange Commission.

Stewart Enterprises, a provider of funeral homes and cemeteries, is facing a costly refinancing through Deutsche Bank and Bank of America's $550 million credit. David Peknay, director of corporate ratings at Standard & Poor's, said the existing bank facility and notes due '03, are at favorable terms, but the choice is either to refinance and pay the new rates or not refinance and not pay the existing debt. Stewart is no longer investment grade and so banks want tighter security provisions and interest rates are higher, said Peknay.