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Adelphia Communications Corporation is looking for banks to finance $3 billion in loans before the end of the third quarter. According to Telecom Financing Week, a sister publication, Karen Chrosniak, director of investor relations, declined to specify what the capital will be used for, but added that Adelphia, the nation's sixth-largest cable operator, is currently in discussions with a number of top firms about arranging the facility. "We're talking to the banks, but nothing has been decided," Chrosniak said. Analysts who follow the company say Adelphia may look to make further acquisitions with the capital.

Some analysts are becoming worried that corporate credit deterioration will soon provoke some real damage in the CDO market, a trend not seen yet. According to sister publication, Bondweek, several CDO tranches are severely stressed, according to Gus Harris, managing director with Moody's Investors Service, who predicts that some will likely default by their maturity date: which would be a first. "We are at the peak of feeling the pain of the bad vintages of 1997 and 1998," says Anthony Thompson, head of CDO research with Deutsche Bank. The newer CDO vintages for 1999 and 2000 will perform much better, he adds.

The institutional market devoured Credit Suisse First Boston's $325 million term "B" of the $625 million Playtex Products deal launched this week. Bankers said the deal blew out roughly an hour after launch with CSFB raising roughly $600 million on the piece. The bank is expected to close down the tranche much earlier than expected. Officials at Credit Suisse First Boston said the firm is still accepting commitments but declined to comment further. Officials at Playtex Products declined to comment.

Mike Mullaney, a longtime fixture in the bond management world of Boston, most recently at Boston Partners, where he was head of taxable fixed income, is leaving to take an equity portfolio management job at Fiduciary Trust Corporation in Boston. Mullaney says that after 18 years of bond management, including a 14-year stint at Putnam Investments, he was looking for a new challenge. He says he is looking forward to working with FTC's growing high net-worth individual practice, and that he will start in the "next couple of weeks." Bill Leach, who will run the Boston Partner's bond efforts out of its Los Angeles office, will replace him. Leach did not return a phone call seeking comment by press time.

News of a bidding war for control of Finova Group sparked a flurry of small trades totaling $25 million in the ballpark of 83 1/2 early Thursday. The bid-offer spread was quoted at 83-84 1/2, up from 81. Meanwhile, dealers cautioned the counter offer by GE Capital was just that, an offer, and still too preliminary to impact levels. "It will still be sloppy," said a dealer. "There's just too many questions. A bid is only a bid; it's not firm." A spokesman at Finova did not return calls.

Del Monte Corporation's $325 million revolving credit and $415 million term loan "B" has been assigned a Ba3 rating by Moody's Investors Service, reflecting the San Francisco fruit and vegetable giant's relatively low potential for organic volume and price growth and the potential for disruption from the energy crisis in California. But the report, written by senior analyst Helen Calvelli, also cites company's strengths, such as its dominant market position, brand equity, and the relatively stable underlying long-term consumption trends for its products.

Barclays and ING Barings, co-arrangers on a five-year, $600 million revolving credit facility for London-based Inmarsat Holdings Ltd, launched syndication of the loan last week with the expectation of completing the deal by the end of the month. Ramin Khadem, cfo of Inmarsat, said the loan is for general corporate purposes and will replace a $400 million bridge loan signed at the start of this year used for short-term financing needs. The banks were chosen based on previous relationships they had with the company, he added. Inmarsat is an operator of global satellite systems for communications.

Irvine, Calif.-based Edwards Life Sciences Corporation, a provider of products and services used in the treatment of late-stage cardiovascular disease, has completed the replacement of its 364-day revolving credit facility, with a downsized $175 million revolver. The previous $650 million credit comprised a $430 million, five-year revolver and a one-year, $220 million facility. The $430 million credit is still in place, noted Daniel Gallagher, assistant treasurer, but the shorter-term loan has been pared down to suit the requirements of the company.

Exodus Communications' bank debt stumbled out of the 100 range after the departure of the company's cfo, Dick Stoltz, late Tuesday. There were reported trades in the 95-96 range totaling $10 million. The Web hosting company's levels are also said to be taking a beating as the industry has fallen out of favor. "It's emerging telecom, so it's a risk that people don't want to go near," a dealer said. "I had a 99 bid out there for a while, and no one would touch it." Exodus, based in Santa Clara, Calif., provides services like server hosting and Internet connectivity that allow businesses to outsource the management of their Internet sites. Calls to a company spokesman were not returned.

Bankers said First Union and FleetBoston Financial closed syndication last week on their four-year, $425 million credit for HRPT Properties Trust (LMW, 4/9) with a 14-member group syndicate including FleetBoston Financial as syndication agent, and Commerzbank and Bank of New York as documentation agents. Other lenders participating in the facility include AmSouth Bank, Citizens Bank, Sun Trust Bank, Bank of Ireland, Chevy Chase Bank, Eastern Bank, National Bank of Egypt, RZB Finance and Bank Leumi.

American General subsidiary of North American Funds has come out with a D-share class on its floating rate loan fund as a way to get exposure for the fund in load-waived brokerage programs. The company previously had two floating rate funds, one under its no-load CypressTree name and one under its North American Funds, load channel brand. Those funds have been merged as the company did away with CypressTree as a retail brand, but there was no share class designed for load-waived programs. The North American floating rate fund has offered B- and C-shares. The D-share has been created specifically to make the loan fund available for load-waived, fee-based programs, as it does not carry a sales charge. "The difference is branding," said Joe Grause, president of the North American Funds. The loan fund asset class has been one of the more popular niche asset classes over the past few years, with industry heavyweights Fidelity Investments, Franklin Templeton Investments and Eaton Vance all devoting significant product development efforts to loan funds. These companies have recently come out with open-end versions of loan funds, but Grause said North American does not have any plans to pursue that type of fund at this time. The existing loan fund offers monthly redemptions, which has satisfied clients' need for liquidity, he said.