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BANK ONE held a bank meeting last Friday for Salt Lake City-based Franklin Covey's $134 million refinancing credit. The bank deal for the personal and organizational effectiveness firm is broken up into a $70 million, three-year secured revolver, $30 million term loan "A" and a $34 million term loan "B." Pricing on the pro rata is LIBOR plus 3%. Terms on the "B" tranche could not be determined.

Bankers are keeping a close eye on the $700 million bank deal for U.S. Industries, speculating that a crucial $100 million junior subordinated debt piece of the financing package may not be filled. The credit, led by Credit Suisse First Boston and Deutsche Bank, hinges on the company rounding up $550 million in subordinated debt, including the $100 million junior piece. CSFB and Deutsche Bank are trying to sign up private equity investors. Officials at U.S. Industries declined to comment. Officials at CSFB and Deutsche Bank did not return calls by press time.

Bankers said First Union at its bank meeting last week offered $25 million pieces of Suiza Foods' much-desired "B" tranche to entice banks to commit $75 million to the pro rata portion of the deal. As first reported on LMW's Web site, the $750 million seven-year term loan "B" came in oversubscribed, but the pro rata, consisting of an $800 million revolver and $1.05 billion term loan "A" may be harder to push, said a banker familiar with the deal. Pricing on the pro rata is LIBOR plus 2 1/2 %, and on the institutional tranche LIBOR plus 3%. Those taking the $25 million will receive commitment fees of 3/8%, and with expectations that the paper will trade as high as 101, bankers can expect to be well compensated for filling the pro rata. Sun Trust has signed on as documentation agent and Bank One is syndication agent. Officials at First Union did not return calls by press time.

A total of $15-20 million VoiceStream Communications' bank debt changed hands last week at 99 5/8 to 99 7/8 as the company gets closer to merging with Deutsche Telekom within the next month. Despite VoiceStream's announcement early last week that first quarter losses had tripled, dealers said the paper's levels were holding up. VoiceStream traded up to 99 1/4 on the announcement that the Federal Communications Commission had approved its merger with Deutsche Telekom (LMW, 4/25). Deutsche Telekom and VoiceStream are set to close their deal on May 31. "That is forcing the market up," a dealer said, noting that the term loan "B" is trading at 99.875 and term loan "A" at 99 5/8.

Westfield America has selected PNC Bank to provide a $92 million construction loan that will be used to renovate and expand a regional mall in Palm Desert, Calif. PNC, which will hold about $30 million, is planning to have a bank meeting in June. It is looking for four to five lenders to round out the syndicate.

A challenging pro rata market for big, well-received deals with blown out "B" term loans has forced lenders and companies to re-think strategies. Bankers said Deutsche Bank has done both on recent deals.

Moody's Investors Service assigned a B1 rating to Crown Cork & Seal's $400 million term loan maturing in 2002 and a B3 rating to the new $2.5 billion revolving credit facility maturing in 2003, due to uncertainty regarding future asbestos claims payments. Recent bankruptcy filings have reduced the number of companies that law firms active in asbestos litigation can target. According to Moody's, these filings could make law firms ever more aggressive in looking for plaintiffs against companies like Crown Cork, from which cash settlement payments can still be obtained within a relatively short period of time after filing of claims. "Law firms are used to receiving cash payments on a regular basis. As the pool of companies diminishes, [law firms] would be more aggressive against the remaining companies," said Christophe Razaire, senior credit officer.

The end of a looming writers' strike and a blockbuster movie have colored a better picture for theater credits. Loews Cineplex's bank debt is now offered at 88, and bids are in the 85 range, according to dealers. In recent weeks market players were anxious about the pending Writers' Guild of America strike and what it might mean to film credits. But with the resolution of the conflict, dealers say the levels should move up. Traders said another factor has been the success of "The Mummy Returns," which has grossed more than $80 million since its release. Loews' bank debt was last quoted at 79-84 (LMW, 2/4).

Bear Stearns is seeking commitments for a $25 million add-on to the term loan "B" of Santa Barbara, Calif.-based INAMED Corporation, the silicone and collagen implant specialist. Bear Stearns led the company's first foray into the syndicated market last spring, with a $107.5 million secured facility, split between a $25 million revolver and a $82.5 million term loan "B". Mike Doty, cfo and v.p., for INAMED, said the revolver stays at $25 million, with the amendment made to the "B". The increase will fund a capital expenditure program, including a major facility expansion in Santa Barbara. Pricing for the five-year credit is LIBOR plus 3 3/4 %, with a basis point added for the term loan enhancement, said Doty. On Feb. 1 next year the firm can pay down the loan without penalty, though a refinancing is also being considered.

Credit Suisse First Boston is the market's best par loan trading desk and Goldman Sachs is the top distressed shop, according to Loan Market Week's annual survey of institutional investors. CSFB, which ingested reigning champ Donaldson, Lufkin & Jenrette, barely edged Chase Securities. Deutsche Banc Alex. Brown nipped at the heels of Goldman, which won the distressed category for the third year in a row.

Dialysis provider, DaVita, Inc., formerly Total Renal Care, Inc., two weeks ago closed its $400 million bank deal through Credit Suisse First Boston and Bank of America. The credit was re-structured to benefit from bond market receptivity to health care as the pro rata portion of the deal struggled in the wake of an overall sluggish pro rata market. Richard Whitney, cfo, explained that the bond market and institutional response to the oversubscribed $175 million "B" portion of the loan prompted the company to reduce its bank deal from $500 million to $400 million and increase its bond deal from $200 million to $225 million. Additionally, the company responded to the blow out on its "B" term by upsizing its "B" by $25 million and trimming "B" pricing to LIBOR plus 2 3/4 %--down 50 basis points--to put it on par with pro rata pricing.

Memphis-based dealer First Tennessee Capital Markets has hired corporate bond analyst Michael Dahood away from cross-town rival Morgan Keegan. Dahood, who joined three weeks ago and reports to fixed income trading chief Louis "Deke" Iglehart, says his focus is on developing both proprietary and customer oriented research for secondary trading opportunities. He notes the firm is trying to build on its strength in the trading and sale of callable agency bonds, and will concentrate primarily in the industrial-grade sector.