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Goldman Sachs is starting to take a "bond-like" approach to pricing and syndicating its deals by gauging the market clearing level for the credits. Where loans typically hit the market and then flex up or down based on investor response, Goldman is looking to be "proactive rather than reactive" in its pricing, said Steve Hickey, co-head of Goldman's bank loan business. As first reported on LMW's Web site last week, the aim of getting pricing input from investors early on is to ensure momentum and interest in the primary market, helping the deal trade better in the secondary market, Hickey said.

Goldman Sachs priced a deal last Thursday for Target Stores (A2/A) on its Dutch auction Web-based Open Book system that almost got pulled because of a technical snafu, according to a deal participant. It was the second such snafu in the past several weeks (BW, 5/1). The deal, a $550 million five-year note, was eventually priced at 101 basis points off the five-year Treasury curve and placed via traditional syndicate method, although not before the bond market rallied nearly 13 basis points, shutting investors out of a potentially profitable trading opportunity. A Goldman spokesperson confirmed the problem, but would not comment on the nature of the glitch. A phone call to the treasurer's office at Target was not returned by press-time.

Janet Showers, an Institutional Investor-ranked treasury bond strategist in 1999 and 2000, has left Salomon Smith Barney for "personal reasons," according to executives in the firm's quantitative fixed-income research group. Showers, who was co-head of the quantitative research group, the firm's main non-corporates research effort, along with Lakhbir Hayre, did not inform colleagues of her future plans, according to insiders. Hayre, who also runs SSB's mortgage research group, would not comment on the departure, other than to confirm that he is now sole head of the quant group. Showers' duties as chief treasury analyst will be picked up by government bond analyst Bulent Baygun, who also will continue his analysis of derivatives, Hayre adds. Repeated calls to Showers' office and home were not returned as of press time.

London-based ING Capital Advisors is ramping up a EURO350 million collateralized loan obligation in an effort to tap a burgeoning European CDO market. Michael Campbell, senior portfolio manager at ING, said the company is trying to position itself as an "early pusher" in the market. "On the institutional side, Europe is in the embryonic stages," he said. At the Standard & Poor's CBO/CDO Conference in New York last Tuesday, Campbell said the company is in the process of finding assets for the vehicle. ING will be launching a debt road show in the next couple of weeks with London-based Goldman Sachs acting as lead underwriter and equity investor. The majority of the CDO will comprise loans with smaller bond and mezzanine debt components.

TheLoan Syndications and Trading Association met last week to continue hammering out standard language for assignments, picking up on an initiative started last October. One of the key issues being examined is whether borrowers can buy back their own debt in the secondary market, taking out a position of one lender rather than paying the group back on a pro rata basis.

An $8.8 million chunk of Mariner Post-Acute Health Network's bank debt traded Monday at 54-55, up from the 52-54 context it had been shuffling around in for weeks. The trade occurred in an auction, with Erste Bank rumored to be the seller. "People seem to be easing up on their health care concerns," a dealer remarked. Mariner, based in Atlanta, Ga., is one of the largest providers of long-term care, operating more than 300 assisted living centers. It has filed for Chapter 11 bankruptcy protection, citing low Medicare reimbursements. Calls to company officials were not returned.

Though U.S. corporate bond issuance is on a record pace for the year, Street strategists are showing little concern about this month's supply flood widening spreads. This is primarily because they think issuance will slow down in the second half of the month, which combined withFederal Reserve rate cuts, will keep bonds attractive.

Buy- and sell-side junk pros attribute last week's 4-5 point price drop on cable company United Pan-Europe Communications (Caa1/B-) bonds to concerns over whether the European cable operator will receive the expected E1billion rights issue from its U.S. parent, Liberty Media. Bids on UPC 11.25% of '09 fell from $67.5 to $62.5, after a UPC conference call last Tuesday in which a senior Liberty executive announced that the issue was not finalized, but would be announced in the next five to 10 days. Pros expect the issue to go ahead as planned, returning the price to where it was before the call. They believe Liberty chairman John Malone will prefer the ownership interest that accompanies an equity or, possibly, a convertible deal.

A $60 million piece of Integrated Health Services' bank debt traded last week in the 50 1/2 range, with the seller, reportedly TD Securities, taking a $30 million hit on its position. Traders at TD did not return calls for comment and a spokesman for the bank said he could neither confirm nor deny the deal or the bank's position in the debt. TD is a lead arranger on the company's $2.15 billion credit and was in the paper at par, dealers said. But even with the $30 million punch in the nose, the bank made out much better than it would have just months ago, dealers noted. "It was in the 20s less than six months ago, but they bought it at par," one dealer said. "In the end, they haven't lost as much as they would've."

Trivest, Inc. skipped the "A" tranche on its recently closed $225 senior credit facility to avoid the weak pro rata market. The credit closed earlier this market and backs the acquisition of Brown Jordan International. Bill Kaczynski, managing director at Trivest, says the company opted out of a term loan "A" on the advice of its lead bank, CIBC World Markets. "They advised us to do this to make the credit facility more attractive to investors. It would have the best structure and good execution," he said. "A term loan 'A' typically amortizes after five years, and a "B" is due after six years. It's more patient money at a higher yield." The facility breaks down into a $165 million term loan "B" and a $60 million revolver. It also pays off a $155 million senior credit facility. Trivest is based in Miami and made the acquisition through its affiliate WinsLoew Furniture.

UBS Warburg held a bank meeting for U.S. investors last Friday for a $94 million "C" tranche for Switzerland-based Kaba Holdings. Two weeks ago, the bank meeting for the European section of the loan, denominated in Swiss Francs and totaling $340 million, was held. UBS and Credit Suisse are co-leads.

Bids on Young Broadcasting's bank debt last week were down to 100 1/4, softening from its most recent level of 100 3/8. One dealer noted that the company has yet to issue full-year guidance, which is considered a negative in the market. "The earnings came out and were a little lower than they had been. It's a tough time for [broadcasting], but it isn't going away," a dealer said. The New York City-based company owns 12 television stations across several geographic markets. Earlier this year the company announced a $750 million bond deal which pushed levels into the mid-101 range. Calls to Jim Morgan, cfo, were not returned by press time.