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Dresser Inc.'s term loans "A" and "B" each topped off over par last week on increased investor appetite for the credit. The "A" tranche hit 101 3/4 and the "B" hit 101 1/2 as more than $100 million of the credit has traded. According to a dealer, the credit "hits the right sweet spots" in the market. "It's in the energy sector. It's rated Ba3 with a positive outlook," he said. Dresser is an oil and gas-equipment services company.

RCN Corporation's bank debt notched up to the high 70s from the mid-70s last week after an equity infusion from Red Basin Capital. Late last week RCN got $50 million in common stock from Red Basin. RCN also announced it has commenced a "Modified Dutch Auction" tender offer for certain of its debt securities. The Princeton, NJ-based company builds broadband fiber optic networks. A company spokeswoman did not return calls.

Finova Group's debt popped to 85 1/2 from the low 80s last week and about $100 million changed hands in a series of trades as competing bidders for the company tried to best one another. A revised proposal from Goldman Sachs' and GE Capital sparked trades early last week, with ABN-Amro rumored to be among the biggest sellers of the name. A bank spokeswoman did not return calls. Levels were nudged up half a point on Friday to 86 when Berkadia weighed in with a new proposal of its own.

Bank of Nova Scotia has committed $50 million of an $80 million credit for Lido Casino to finance the construction of a new convention center. The bank is tapping existing lenders to the company for the remainder of the loan, split between a $30 million revolving credit and $50 million "A" term loan.

It took a little house work, but Tapco Carpentry's bank debt is slowly but surely moving up and is now bid at 97 1/2. The paper was offered at 96 1/2 a few weeks ago and has slowly inched up in a series of trades. Tapco, based in Plymouth, Mich., constructs shutters for houses. A company spokesman could not be reached by press time. Tapco has a $217 million credit facility that expires in 2008. Well Fargo Bank and Morgan Stanley lead the deal, according to Capital DATA Loanware.

Triad Hospitals downsized its $1.4 billion acquisition credit to $1.2 billion after choosing to upsize its bond piece, as market conditions proved more favorable in the bond market than in the pro rata market. Burke Whitman, cfo, explained that the company decided to move a piece of the "A" tranche into the "B" and increase the bond offering to respond to very strong institutional and high-yield demand. "The 'B' piece and bond piece were so significantly oversubscribed that we had the nice problem to have, which is the challenge of allocating among loyal, repeat investors," he explained.

Moody's Investors Service upgraded Enterprise Products Operating L.P.'s senior unsecured debt ratings to Baa2 from Baa3, reflecting the increased scale of operations and strong market position in the Gulf Coast region. Enterprise's operating capabilities and growth opportunities have been significantly enhanced by the recent acquisitions of Acadian Gas and interests in four Gulf of Mexico natural gas pipelines.

Morgens, Waterfall, Vintiadis & Co. is winding down its approximately $600 million distressed debt fund following the departure of the portfolio's lead managers. According to LMW sister publication, Foundation & Endowment Money Management,Stephen Ledoux and Neil Augustine have left Morgens, Waterfall to join investment bank Rothschild Inc., where they will advise creditors and debtors during bankruptcy processes.

Nextel Communications' bank debt continues to trade up, as dealers say the credit tends to dodge problems that plague other telecom names. Nextel's hefty $7 billion deal and credit reputation has helped the paper stay liquid, and a convertible deal last week has bolstered investors. Levels on the bank debt firmed up to 95 3/4 last week, up from a recent low of 92. There were several small pieces reportedly traded. A company spokeswoman did not return calls.

A massive incomprehensible juggernaut rushing down on them too fast with too many hidden parts is how even the most sophisticated banking institutions were reading the Basel Committee second capital accord when the deadline Basel set for commenting on it expired last Wednesday. Despite the May 31 deadline, an official of the American Bankers Association said last week that ABA would not be ready with comments on the incomplete draft Basel had put out until mid or late June and suggested October as a target for more definitive comments on what ABA's members think of the completed draft.

As happens every year, Street bond players blamed last week's thin trading on the fact many buysiders were hunkering down to prepare for the annual Chartered Financial Analyst exam to be held Saturday. Joining in the fun was a spokesman for the Association for Investment Management & Research, a.k.a. the Association for Ignoring Marriage Responsibilities, who had his best material ready to roll. Have you heard the one about the test-taker who chose to use the six hour test to discuss his summer vacation plans? He hadn't put in the requisite 250 hours of studying and had to do something to fill the time, since he'd told his boss, who was in the seat behind him, that he been pulling all-nighters in order to prepare.

Moody's Investors Service has assigned a B1 rating to the $4.5 billion in bank facilities for Toledo, Ohio-based Owens-Illinois, Inc.'s subsidiaries. Christophe Razaire, v.p. senior credit officer for Moody's, said, "The lenders have pretty good collateral coverage, substantially covering the loan." The loan rating is therefore one notch higher than the senior implied rating, which has been downgraded based on the likelihood that free cash flow available for debt repayment will remain thin over the medium term. Future deterioration of free cash flow arising from payments over asbestos litigation could place further pressure on the ratings.