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Houston-based energy exploration company, Magnum Hunter, two weeks ago closed a $225 million credit facility with lead Deutsche Bank after putting the credit out to bid to Deutsche Bank, Credit Lyonnais, BNP Paribas, and CIBC Workd Markets. After Deutsche Bank was selected as administrative agent, Chris Tong, cfo of Magnum, explained that the company tapped CIBC to act as syndication agent. "We put the business out to bid to our existing lenders that we thought could play a lead role," he said. Tong said the company's decision to select Deutsche Bank as the lead was more a result of the company's comparatively longer historical relationship with the firm rather than a more competitive pricing structure. In terms of Deutsche Bank winning future bond business from the company, Tong said, "Certainly they will have a good opportunity to do that."

An $8 million piece of Mariner Post Acute Network's bank debt traded at 56 on Wednesday, with ABN-Amro rumored to be the seller. The buyer could not be ascertained, but dealers said the latest trade is even to recent levels. "All of the health care names have improved," said a trader. A company spokeswoman did not return calls. ABN officials did not return calls by press time.

Ohio Casualty Corp. is nearing the end of a covenant waiver extension and bankers expect the insurer to make a move to refinance, according to Insurance Finance & Investment, an LMW sister publication. Ohio Casualty has a $250 million credit line through J.P. Morgan Chase that contains a covenant requiring the company to maintain $750 million in statutory capital. That provision severely limits the company's flexibility, especially as its levels dropped to $765 million by year-end 2000. Earlier this year the insurer renegotiated the minimum statutory capital level down to $650 million only until the end of June. A spokeswoman for Ohio Casualty declined to comment, and calls to J.P. Morgan Chase were not returned by press time.

Deutsche Bank is leading a credit for Argentine conglomerate Perez Companc that employs a novel structure that allows the company to repay the loan with oil. The repayment feature is designed to mitigate the risk of currency and convertibility risk. Pricing and the amount of the credit could not be ascertained. Officials at Perez did not return calls.

An auction last week resulted in the sale of a $17 million chunk of Owens Corning's bank debt around 60 and a $13.5 million piece of Harnischfeger Industries' bank debt at just under 54, up three points for the credit. Owens is also said to be inching up, having traded in the 58 context the week prior. Wisconsin-based Harnischfeger manufactures heavy equipment for the mining industry.

Regal Cinemas is reportedly preparing a new bank deal to retire debt and word of the new credit is pushing up levels on the existing loan. A $10 million piece of the company's bank debt traded last week at 93, up about five points from recent levels. Details about a new deal have yet to be hammered out, bankers said. Calls to a company spokesman were not returned by press time.

The imminent merger between Deutsche Telekom and VoiceStream Wireless has traders viewing their bank debt as one credit, so news on one is affecting the other. Early last week a $10 million piece of VoiceStream's paper traded at 99 3/4, which is down slightly for the name. Traders attributed the move to a ratings downgrade of DeutscheTelekom. "There's some selling pressure on the Deutsche Telekom downgrade and refinancing concerns," a trader noted. Mobile phone operator VoiceStream is based in Bellevue, Wash. Calls to a company spokeswoman were not returned.

Key Bank and Wachovia Corp. have wrapped up syndication on their $350 million refinancing credit for Westlake, Ohio-based Nordson Corporation. A banker close to the situation said that Credit Lyonnais and Bank of Nova Scotia took co-documentation roles. The deal was split between a $100 million, 364-day revolver and a $250 million, five-year revolver. All-in pricing was LIBOR plus 11/2 %. Nordson is a producer of precision dispensing equipment, with applications in consumer and industrial products during manufacturing operations. Nicholas Pellecchia, v.p., finance and controller for Nordson did not return calls.

Although issuance actually picked up on the week ($20.5 billion vs. $13.1 billion the week before), the weighted average credit quality deteriorated (to A-/BBB+) and the deals were on average smaller ($420 million). The primary market continues to be open to a wide range of issuers as this week's calendar shows. Navistar (Ba1/BBB-), a cyclical industrial, was able to issue $400 million in debt and the deal was reportedly three times oversubscribed. In addition to Navistar, another $2.5 billion of split-rated and high yield credits brought debt to market. While the market for straight debt deals posted an average week, the convertible market was on fire due to the rally in equities. Thus far in May, a record $14.2 billion in convertible debt was issued out of a total $50.3 billion year to date.

A rumored buyout of Wyndham International by the British company Bass Hotels & Resorts was said to push up Wyndham's term loan "B" up around 98 7/8 to 99 1/2, while the revolver traded at 99 1/4 to 7/8. One dealer said as much as $20 million of the name may have changed hands. Calls to the company were not returned. A company spokeswoman for Bass Hotels did not return calls.

Several Street ABS research pros say an acceleration of home equity loan (HEL) prepayment speeds are underway, but they are drawing different conclusions on how it will affect the spreads in the sector. Rod Dubitsky, home equity research analyst with Credit Suisse First Boston in New York, says prepayments increased 1% to 2% from March to April for the 1995-1999 fixed-rates vintages, but he doesn't foresee spreads widening as a result. Gyan Sinha, head of ABS research with Bear Stearns, also anticipates an acceleration of prepayment speeds into July, and agrees there should be little pricing change because of this. He adds that HEL premium coupon bonds traditionally trade cheaply from a fundamental perspective. Sinha adds that future HEL buyers in July will have more protection from prepayment risk because speeds should start to slow down by then, as most of the Federal Reserve easing should have taken place.