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Two banks have committed $55 million to a $125 million line for Capital Pacific Holdings led by Bank One. Fleet Securities chipped in $40 million while California Bank & Trust has committed $15 million. The bank meeting was held two weeks ago, according to a Bank One official. Three to five additional lenders are being sought. Up-front fees range from 20 to 40 basis points, depending on commitments, he said, declining to elaborate.

Dealers last week were keeping a close eye on asbestos credits, expecting that after USG Corporation filed for Chapter 11 bankruptcy the last two standing would soon follow. "Everyone's waiting on Crown Cork & Seal and Owens-Illinois," a dealer remarked. He believes that bankruptcy protection is a short-term solution to a long-standing problem. "[Chapter 11] might protect these credits for now, but it will prolong the inevitable," he said. Early last week Owens Corning traded down slightly to 62-63 in a $20 million trade. A spokesman from USG declined to comment. Calls to officials at Owens-Illinois and Crown Cork were not returned.

The primary market is winding down fast as we head into the July 4 holiday week and then into summer. A total of $11.8 billion came to market with higher quality borrowers concentrated in the very short end of the curve and lower credit companies continue to lock in absolute rates that look attractive on a historic basis. Notable deals for the week include: Mission Energy Holding (Ba1/BB-), which managed to cobble together $800 million in demand. The funds will be funneled up to the parent, which will stave off bankruptcy until fall pending additional relief from the California Legislature; Egypt (Ba1/BBB-), which is set to price its first international offering; and Bombardier (A3/A-), a relatively new borrower in the Yankee market. With junk deals making up over 1/3 of new issues, the weighted average credit quality on the week declined to mid/high BBB.

Chicago-based GATX Capital recently increased its $300 million credit to $425 million to support an expanding commercial paper program. Robert Lyons, director of investor relations, said GATX added Salomon Smith Barney as joint lead arranger and bookrunner. "Salomon was chosen based on a longstanding relationship, rather than a formal bidding process," he added.J.P. Morgan Chase leads the loan for the company, which provides asset-based finance across numerous industries.

Genesis Health Ventures traded up to 71 1/2 after dangling for a month in the low- to high 60s. Genesis and The Multicare Companies filed a joint plan of reorganization on June 5 in the U.S. Bankruptcy Court. Multicare's levels are said to be in the low 70s, also up slightly. "Multicare and Genesis settled with unsecured debt holders and bond holders, and that helped to push the price up," said a dealer.

Global Crossing's bank debt notched up then softened last week in a $3 million trade. Dealers reported levels inched up to 941/ 2 from 90, and later reports indicated the levels had come back a bit to the 92 range. With the telecom sector getting hammered these past few weeks, a dealer attributed the trade to luck. "Someone saw an opportunity and hit it," a dealer said. Calls to the company were not returned.

Hollywood Entertainment's bank debt traded last week at 96, up from 90 early in the month. The seller was rumored to be Sumitomo Mitsui Banking Corp., which has reportedly been an especially active seller lately. The buyer could not be ascertained. A bank spokesman declined to comment on trading levels. Hollywood Entertainment, based in Wilsonville, Ore., is the number two video rental business behind Blockbuster. Calls to the company were not returned by press time.

Independent fixed-income research outfitsCreditSights, based in New York, and Gimme Credit, based in Chicago, are attracting attention for their calls on the credit safety and relative value of high-profile primary and secondary market bond issues. The value of heeding advice provided by firms that have no economic interest in trading or underwriting bonds has been heightened by the $250 million Goldman Sachs-led Cummins Engine convertible preferred (Ba1/BB+) offering and the recently completed offering for Mission Energy Holding (Ba2/BB-), according to portfolio managers and analysts.

Moody's Investors Service has recruited 12 analysts for its structure finance department, all of whom are scheduled to start between this month and August. Brian Clarkson, managing director of the structured finance-Americas group, says the hires are needed to keep pace with the overall growth of the ABS/MBS sector.

Polaroid is in talks with J.P. Morgan Chase about refinancing approximately $525 million in debt, but bankers said any deal would be a challenge as the company's bank group includes lenders that have pulled back from the market and especially from low-rated credits. A spokesman for the company said Polaroid is looking at a number of alternatives, including a bank deal. He declined to comment about a potential structure, pricing, or a date for syndication, noting that there are many issues that need to be worked through.

Bank of New York and Sun Trust Bank have come on board as syndication agent and documentation agent, respectively, for CIBC World Markets' $265 million credit for Adams Outdoor Advertising. Bankers following the deal said that another two banks are already on the revolver and that half of the $200 million institutional tranche is filled. The names of the banks could not be ascertained.