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This chart, provided by Citibank/Salomon Smith Barney Inc., tracks bid-ask prices for par credit facilities that trade in the secondary market. It also tracks facility amounts, ratings, pricing and maturities.

Two $5 million pieces of Allied Waste bank debt traded last Wednesday as the name gained favor in the market and waste hauling industry in general improves. Moreover, one dealer cited a rumor in the market the company is doing a bond deal that will take out some of the bank debt. "It's a really good deal right now," he said, adding that the company is also planning to do asset sales that will result in a paydown. Thomas Ryan, cfo, said the company hasn't made any official announcements about asset sales or a bond deal. "We have existing asset transactions, which are old news, but we've made no announcements in terms of financing," he said. Dealers report that the "B/C" tranche traded at 971/8, up about 3/4 of a point, and the revolver traded at 933/4, up about one point and 1/4. "The company is performing well. People are more comfortable with the name," said a trader. Another market watcher agreed, saying simply, "The bonds are up, the name is good and obviously there's some retailing buying." A market watcher said the loan levels are following better stock levels. He said he believes Allied's levels are slightly higher than those quoted by the other dealers and said Allied is in line with the success of the industry. "Other equities in the industry have turned north. Waste Management is up. The problem the market perceived the companies to be having-such as fears that they couldn't integrate-didn't materialize," he said.

J.P. Morgan Chase is assembling a collateralized debt obligation, employing the Morgan Intermediate Collateralized Loan Obligation Securities (MINCS) structure, with American Express Asset Management as investment manager, according to J.P. Morgan Chase officials. Market players note that this marks the first time that AmEx will manage a structured product consisting entirely of loans. In March, AmEx hired Yvonne Stevens and Lynn Hopton from SunAmerica Corporate Finance, a move that industry observers at the time said would allow AmEx to expand its in-house structured product management capabilities to include loan structures. The Minneapolis-based firm has managed CDOs with high-yield collateral, as well as some with relatively low loan components, totaling some $3 billion. Calls to Stevens, Hopton and other AmEx officials were not returned by press time. Marketing on the transaction, which is expected to close in March, began late last week. The deal with AmEx would be the bank's sixth MINCS transaction. J.P. Morgan originally developed MINCS to compete with Chase Securities' Chase Secured Loan Trust (CSLT) by providing an investment-grade rating and leveraged exposure to bank loans (BW, 11/16/98). The MINCS structure came to be regarded by some investment managers as superior to CSLT for its greater transparency, and market players note that the relative popularity of MINCS could lead to the phasing-out of the CSLT structure. The first MINCS transaction, a $700 million deal that came to market in April 1999, was managed by TCW Asset Management. Others followed with managers including ING Capital and Pilgrim Investments.

Merrill Lynch has brought a throng of relationship banks into its $1.675 billion credit backing Triad Hospitals' $2.4 billion acquisition of Quorum Health Group. Bank of America, which took on half the loan, has signed on as co-lead arranger and co-book runner, as well as administrative agent. J.P. Morgan Chase and Citigroup have signed on as co-documentation agents, with each firm hauling $150 million. Senior managing agents include Credit Lyonnais, First Union, FleetBoston Financial, Bank of Nova Scotia and GE Capital, and each bank committed $125 million. UBS Warburg signed on as managing agent, kicking in $65 million. The banks all signed commitment letters before year-end this past December, according to a banker tracking the credit. General syndication has been tentatively set for early February, after the loan is rated. Triad could earn a BB rating, the banker said. Standard & Poor's affirmed the company's B+ corporate credit and bank loan rating in October last year.

Bank of America, Citigroup and Bank of Nova Scotia launched in New York last Thursday syndication of their fully underwritten $1.5 billion deal for Levi Strauss, according to a banker familiar with the deal. The banks are looking only for participants and will not dole out any other titles. Commitment sizes and fees had not been finalized by press time, but one banker said the triumvirate will most likely seek amounts of $35 million, $25 million and $15 million. The new credit will refinance existing debt. B of A is administrative agent, Citi is syndication agent and Scotia is documentation agent. The banks equally underwrote the loan. Levi Strauss, based in San Francisco, designs, manufactures and markets clothing. A spokeswoman did not return calls seeking comment. The credit is structured as a $750 million, two-and-a-half-year revolver, a $350 million, two-and-a-half-year term loan "A" and a $400 million term loan "B." Pricing opens at 31/2% over LIBOR across all tranches. Pro rata pricing is based on a grid linked to the company's leverage for the first six months, and then flips to a performance-based grid linked to earnings before interest, taxation, depreciation and amortization. A banker familiar with the pricing scheme declined to provide the ends of the grid. The "B" tranche will remain fixed.

A $10 million piece of the Finova Group's '02 paper traded up last week at 70, moving from its previous level of 68. The seller was reportedly Asahi Bank, but that could not be confirmed by last week. Officials at Asahi bank did not return calls by press time. One dealer said this upward trend is consistent with the bonds moving up, as well as news that investor Warren Buffett is interested in the company's debt. "Because this company has financial assets it's easier to get a level," a trader said. "If the company were to go bankrupt you could still sell the loans. It's easier than selling inventory. Investment shops are willing to buy loans quickly because it's easier to get a handle on where it should trade." The Scottsdale, Ariz.-based company offers commercial financing to small and mid-sized businesses. A spokesman did not return calls by press time. Dealers put varying weight on whether Buffett's interest in Finova has nudged up trading levels. "I wouldn't say it's that. People have known for a while that he was interested," said one. Another believes the upward trend is due largely to Buffett's investment. "He may see there's significant value-he's a value player," said a market watcher. "With a finance company it's so hard to know [where it's headed] unless he's gotten a chance to look at the details of the portfolio. [Buffet's interest] is certainly good for it in the short-run. He's been wrong, but certainly more often he's right."

Joint leads UBS Warburg and BNP Paribas have decided to approach the ratings agencies with their $160 million credit for Hartz Mountain after another lukewarm reception from relationship banks, according to officials familiar with the deal. General syndication has been postponed until early February. "It's something we're considering," said one banker on the deal, declining further comment. Another official close to the matter said, "The ratings will determine the new pricing. The BBs might be a bit ambitious, but they're hoping. They'd be happy with BB-," said one banker close to the credit. He declined further comment. Officials at BNP, UBS and J.W. Childs did not return calls seeking comment.

Sierra Health Services (SIE) restated and amended its credit facility to $185 million after the company violated certain covenants on its $200 million loan, according to Paul Palmer, cfo in Las Vegas. "We wrote off goodwill and other assets and took a significant charge and fell out of compliance with certain covenants," Palmer said. SIE took charges of $141 million for goodwill impairment and $48 million for fixed-asset impairment, according to its 10-Q filed Nov. 14. The form also stated that the waivers included amendments to the credit that required the company to grant its lenders a security interest in certain personal property and reduce availability under the line of credit to $185 million. Syndication closed Dec. 15. Bank of America and First Union co-lead the credit. Bank officials declined to comment. Palmer explained that as of June this year, SIE was not in compliance with the covenants but had received waivers through Oct. 31. By Nov. 8, however, the company received a notice of default after it was unable to reach an agreement on new waivers with its bank group. "We've received all waivers needed and are in full compliance with the new facility," Palmer said. The form also stated that in June, the company had $185 million drawn on its previous $200 million deal.

Lead arrangers for Emmis Communications' $1.4 billion credit facility held a pooled sell-down on the pro rata portion and $200 million was reportedly shifted from the pro rata to the "B" term loan as the credit met with some resistance in the market. The moves--generally associated with tough going in the primary market--came even as the deal was touted as a strong credit by a rating agency, illustrating the point that media deals are having the same trouble telecom deals are having.

BNP Paribas and LaSalle Bank will launch at a bank meeting Wednesday in Chicago syndication of an equally underwritten $105 million deal backing Hyatt Corporation's construction of Continuing Care Retirement Community (CCRC). Hyatt has contributed $32 million of equity, and there are $21 million of operating and completion guarantees, according to sources familiar with the deal. BNP and LaSalle are co-arrangers and co-syndication agents. The credit is a five-year construction loan that will term out after one-and-a-half years. Pricing is 2 1/4 % over LIBOR, with a commitment fee of 1/2%. Bank officials did not return calls seeking comment. Frank Borg, senior v.p. finance of Hyatt in Chicago, declined to comment. Hyatt operates luxury resorts throughout North America and the Caribbean.

Bids for Charter Communications' credit facility have slipped to 99 1/2 from close to par due to a heavy supply of cable paper, dealers said. "There's a lot of cable paper out there. Insight is in the market," one remarked. Another dealer confirmed the level and agreed that the excess of paper from various companies is the cause. Charter, based in St. Louis, Mo., is a domestic cable operator. The company is going out for a high-yield offering of $850 million and went on a road show last Friday. Calls to Kent Kalkwarf, cfo, were referred to a spokeswoman, who declined to comment.

Bids for Conseco Inc. moved up last week to 80 from the mid-70s. "It should trade in the low 80s," a market watcher predicted. Traders say the company is enjoying improved numbers on the heels of investor Warren Buffett's interest in the bonds. "People are just feeling more comfortable with the company," a dealer said. "Conseco's business is also improving." The Carmel, Ind.-based company specializes in life insurance. Stock prices plummeted last year after the company bought Green Tree Financial, but have since risen as news of Buffett's investment broke. A spokesman for Conseco wasn't aware of any loan trading, but added, "It doesn't surprise me, considering Berkshire Hathaway had been buying Conseco debt." He mentioned that the company's corporate bonds are now trading in the par range and that he expects the loan pieces to follow. "Our world started at the beginning of July in terms of building a new Conseco," the spokesman said. Changes included selling off five pieces of Green Tree, cutting 150 jobs and saving $150 million in annual expenses. The company plans to pay off $3 billion in debt over the next three years. "We're about two-thirds of the way through a substantial turnaround. The meeting of those debt payments is driving the value of our debt higher," he said.