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The bid-offer spreads on the bank debt of Loews Cineplex and Regal Cinemas have been moving up to 79-84 and the low to mid-70s, respectively, as box office winners help out the industry, dealers said. "There's just better movies out now," said a dealer. "Movies are the product, so if good movies come out they make more money. Investors are also happier with their product and are feeling more secure." Another dealer said billionaire investor Philip Anschutz's interest in Regal's bank debt and move to take control of United Artists Theater Circuit is helping the levels. "It's driven a frenzy in the market, and certainly moved things up," he said, adding that he's doubtful levels will propel much further. "There's a lot of rumors floating around about Regal," said a dealer, declining to name specifics. "There are a lot of rumors of consolidation in all the theater names."

Dealers played a cat-and-mouse game with as much as $40 million of Integrated Health Services' bank debt last week, moving its price up about seven points. There were several small trades and reportedly a larger-sized sale of about $20 million, but dealers differed over amounts and timing to the point where some questioned whether the paper was actually changing hands. What is certain is that the bank debt of the bankrupt health care company was getting a lot of attention and prices moved up to about 38. Dealers attributed the activity to an improving industry, but even among its peers IHS got the most attention.

Ames Department Stores signed a deal for $800 million in senior secured financing with General Electric Capital to finance upcoming store expansions and for general operations. The credit replaces a $650 million facility that Bank of America previously led that was set to expire in June of next year. Rolando de Aguiar, cfo of Ames, said the company has larger inventory and capital expenses and that a new facility was needed to accommodate that. "This facility provides more flexibility and has a higher advance rate," he said. "It's been a tough year for retail, and we needed more flexibility. This facility gives us more stature and more fire power." De Aguiar said Ames is planning to add five stores this year. "As the economy strengthens, we'll pursue other opportunities," he said.

Hong Kong Mortgage Corp (HKMA) is in the process of appointing a bank as a rating adviser, with the intention of accessing the international debt markets later this year. The state run institution has had proposals from about eight banks. "We decided at our board meeting last October to initiate the process of gaining a rating," said Philip Li, senior vice president for finance at HKMA. "The banks have all given us their proposals and now it will be decided internally."

Merrill Lynch spearheaded another good week of issuance in the Australian primary debt market this week, demonstrating continuing strength in domestic investor demand. Merrill Lynch self-lead managed a A$400m two year dual tranche Kangaroo bond issue, with strong investor interest meriting an increase in size from A$350m.

The NTT DoCoMo jumbo new share offering is showing positive signs, according to bankers working on the deal. Strong retail interest coupled with large foreign orders are encouraging, and the issue, handled by Goldman Sachs and Nikko Salomon Smith Barney, could raise as much as $8.8bn. The bankers declined to comment on how much retail demand there is, but confirmed that around 55% of the 460,000 shares will go to individuals in Japan. Some 15% will be allocated to Japanese institutions, 15% to European funds and 15% to the US market.

The Chunghwa Telecom privatisation is turning into a cautionary tale of misjudgment and misunderstanding. The Taiwan government announced this week that it would not proceed with its planned $2.8bn international offering of Chunghwa shares. Most observers believe the government was ambitious in attempting such a large offering in the first place.

Australian forestry company Timbercorp this week used Commonwealth Bank of Australia's asset backed commercial paper programme to launch an innovative deal refinancing loans backed by eucalyptus trees. Although a number of deals backed by timber have been closed in the US, this is the first time that the technique has been used in Australia or Asia.

Premature reports surfaced this week that CNOOC will price its forthcoming IPO at HK$7 per share to raise around HK$11.5bn. Lead managers BOCI International, Credit Suisse First Boston and Merrill Lynch could not confirm the reports, saying that the price range would be set later this week. However, they said the issue has been well received in premarketing. The company is selling 1.64bn shares, of which 200m are secondary shares. There is also a greenshoe of up to 13.17% of the offer.

Australia Bank of Queensland was roadshowing a floating rate note for $100m in Asia this week. The bank is launching the deal in order to refinance a euro medium term note issue that matures in late February.

Hong Kong Li Ka-shing this week confirmed to the press that his listed companies would not be buying into Pacific Century CyberWorks (PCCW). This came as a relief to followers of Cheung Kong and Hutchison Whampoa. Some had feared that Li might use his estimated $25bn war chest to take up some or all of the stake that Cable & Wireless wants to dispose of, now that a lock-up period has expired. C&W is allowed to sell 7.5% of PCCW from February 17.

ORIX New Zealand Ltd, the wholly owned subsidiary of ORIX Australia Ltd, is preparing to issue the first securitisation in Australia or New Zealand to be backed by the residual value and maintenance risk of auto operating leases. Lead managed by Macquarie Finance and arranged by Macquarie Bank, the deal will raise NZ$98.4m through four tranches of floating rate notes. The transaction is expected to close on February 15.