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Covanta Energy Corp., formerly known as Ogden Corp., closed on a $146 million, one-year credit facility two weeks ago and will be looking to launch a new credit with a new group of lenders by the end of the year or the beginning of next year. Lou Walters, treasurer, explained that after a corporate restructuring the company consolidated its bank debt and set up the new facility to provide interim financing. "This loan won't see its maturity," said Walters, explaining that the credit replaces roughly 40 facilities the company had with over 30 banks to support its former aviation and entertainment businesses along with energy. Walters declined specify banks and pricing on the credit.

First Union Securities and FleetBoston Financial will increase to $425 million a revolver they syndicated for HRPT Properties Trust on a best-efforts basis to raise $400 million. The deal was oversubscribed by $100 million , and although it included an accordion feature that allowed it to extend the size up to $600 million if oversubscribed the banks and the REIT decided to set the line at $425 million, one banker said. "That was adequate capital for the company," he said. The REIT retains the option of expanding the line without lender approval for its full-term. The facility is expected to close in mid-April.

The price of W.R. Grace's bank debt dropped about five points to 45 as the company last week dragged lendersalong with their unsecured paper -- into bankruptcy. The move carries a particular sting for holders of the bank debt, as Grace had reportedly been talking to banks about a secured deal that would have put lenders in a much better position in the event of bankruptcy. "It hurts for them," one dealer said of the bank group. "It means the difference between a 75 to 80% recovery versus a 55-65% recovery. If the deal was secured, the group has some superiority in claims. Now they're up against everyone from payroll to the stationary store to the telephone company."

Greif Brothers chose Merrill Lynch to lead its $900 million credit backing its acquisition of Netherlands-based Huhtamaki Van Leer on the back of the firm's m&a advisory work. Ken Kutcher, cfo, said the company chose Merrill as its credit's lead arranger for the first time over Key Bank, its longstanding relationship bank. Kutcher noted that Merrill had familiarity with the transaction on the m&a side and more developed international expertise in general than its other lender. "The credit had international scope and we knew we would need international banks to be involved," he said. "We still have a strong relationship with Key Bank and I cannot say enough about their capabilities and support for the company," said Kutcher, explaining why Key Bank still participated in the credit as syndication agent. "They got second billing and we still wanted them to have a key leadership role," he said

Heller Financial, Antares and General Electric Capital Corp. have joined CIBC World Markets as co-arrangers for a $235 million secured credit facility for Florida investment firm Trivest Furniture Corp.'s leveraged buyout of patio-furniture maker Brown Jordan Co. on behalf of WinsLoew Furniture, Inc., the casual furniture manufacturer. Trivest took a controlling shareholder stake in August 1999 of WinsLoew and has since acquired three firms for the company, noted William Kaczynski, managing director with Trivest responsible for WinsLoew. Kaczynski declined to comment on any potential deal for Brown Jordan.

For many investors seeking high quality paper amid extreme volatility last year, supranational debt was an attractive option. But borrowers still had to address issues such as liquidity and competition from other triple-A credits. EuroWeek finds out how successful they have been.

With questions over government support now largely resolved, the agency market has emerged stronger than before. Louise Herrle, treasurer, Freddie Mac, and Stephen Abrahams, chief of the capital markets division at IADB, spoke to EuroWeek about their funding strategies for the future.

Volatility in global equity markets and a spate of corporate defaults in recent months have sparked a flight to quality among investors. And as government supply has been scaled back, demand for agency paper has grown. EuroWeek asks several borrowers how they have sought to position themselves as an alternative to government debt.

Australia Standard & Poor's has placed Ansett and Air New Zealand's BB+ rating on CreditWatch. The rating agency said that although the company has A$1.2bn of available funds, it has suffered substantial losses because of competition on fares in Australia which has dented the share price.

Australia Boutique firm KTM Capital is arranging the IPO of Globe International, which is raising A$74m. Market capitalisation is expected to be A$360m, and the valuation indicates a 2002 Ebitda multiple of 8.5 times.

The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, returned to the public international debt capital markets for the first time in over 18 months when it launched a $130m 2-1/2 year floating rate note this week. JP Morgan is sole lead manager of the Ba1/BB+ rated issue, which was launched at a spread of 275bp over six month Libor.