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Moody's Investors Service assigned a Ba1 rating to Alliance Atlantis Communications' proposed C$500 million of senior secured credit facilities because the company is expected to have additional expenses associated with the launch of specialty television networks as well as the acquisition of additional business units. Alliance is a major Canadian production company and movie distributor, with operations in television, film, broadcasting and the Internet. W. Judson Martin, cfo, did not return calls for comment by press time.

Allied Waste reached a high this week of 981Ž 2 as a rumored bond deal and the company's strong performance continue to propel the paper. Dealers reported that $5 million of the "B/C" tranche changed hands. But traders are beginning to question the levels and the premise on which they're based. "The level is steep. It's extremely expensive to pay for it now," one trader said. "Regardless of whether there's a bond deal, it doesn't make sense to pay that much for it." One dealer noted that an unconfirmed rumor is a flimsy basis for higher trading levels. "What's to say the company isn't going to turn around and announce it won't do a bond deal? Anyone can start a rumor," he said. The Scottsdale, Ariz.-based company hauls garbage for over nine million residential and commercial customers.

After a thin year squeezed by a lack of high-yield issuance, a wave of junk collateralized bond obligations is poised to hit the market on the tails of strong new issuance. "The pipeline is ready to explode," according to buyside sources, says Brian McManus, CBO analyst at Merrill Lynch in New York, who is predicting about 25 new junk-backed structured products in the next one to three months. But that very flood of deals may drive up the price of junk and snuff out the fat arbitrage between the underlying assets and what the structures pay out to investors, argue other analysts.

Six banks are currently underwriting tickets for BNP Paribas and LaSalle Bank's $105 million deal backing the construction of Classic Residence by Hyatt at the Glen, according to an official familiar with the credit. "They are all traditional continuing care retirement community lenders and Pritzker family lenders," the banker said. He added that the co-arrangers have yet to decide if they will award another title role to any of the interested banks. He declined to discuss ticket sizes and up-front fees. BNP and LaSalle are also co-syndication agents. Bank officials did not return calls seeking comment. Frank Borg, senior v.p. finance of Hyatt in Chicago, declined to comment.

Boston Partners Asset Management has begun bulking up on corporate bonds, a move that may result in upping its allocation from roughly 22% to as much as 34%, or $192 million.Mike Mullaney, the director of the firms $1.6 billion taxable fixed income portfolio, says the strategy has been financed by selling shorter-maturity Treasuries, declining to specify how much has been added so far. The rational for the trades is his team's view that corporates will outperform other spread sectors as the Federal Reserve eases rates, as they have over recent weeks.

The bank debt of Pacific Gas & Electric and Southern California Edison last week dropped about 10 points in the secondary market as blackouts hit California. The drop brought unsecured debt down to the 50s, while secured debt was quoted in the mid-70s, dealers said.

Bank of America and FleetBoston Financial have signed on to Bank of Montreal's $500 million credit backing Pogo Producing's acquisition of NORIC Corp.'s North Central Oil, according to an official familiar with the deal. Société Généralé is reportedly considering joining at the same level, the official said. He declined further comment. James Ulm, cfo in Houston, would only say that several banks are going through due diligence and standard credit procedures to make commitments. "The deal just launched last Thursday, and Monday was a holiday. They need time to get back home and do the work," he said. Ulm declined further comment. Bank officials did not return calls seeking comment.

Credit Suisse First Boston shifted $10 million from its $60 million term loan "A" to the $146 million term loan "B" after banks heavily oversubscribed to the credit backing the leveraged buyout of Collins & Aikman Floorcoverings (CAF). Pricing on the "B" subsequently ticked down 1/4% to 31Ž 2% over LIBOR. "It was a massive blow-out, more than three times," said one lender on the deal. He cited the credit's "strong fundamentals," but declined to elaborate. Oaktree Capital Management and Bank of America Investment Partners are the sponsors. Firm officials and a CSFB official declined to comment.

Moody's Investors Service upgraded Charles Rivers Laboratories' $190 million credit facility to Ba3 from B1 because the company has improved its credit profile. Charles River completed its $236 million initial public offering last June and repaid $205 million of debt. The company also cut leverage down to 2.4 times from 5.2 times between last year's first quarter and third quarter. Interest coverage has also risen to 3.3 times from 1.3 times during the same period. The agency believes, however, that debt reduction may halt significantly due to the company's acquisitive strategy. Charles River, based in Wilmington, Mass., is a commercial supplier of laboratory animals used in pharmaceutical testing. Union Bank of California leads the facility.

J.P. Morgan Chase declined to participate in a new $225 million deal for Consolidated Graphics after First Union won the lead. Gary Wright, treasurer of the Houston-based sheetfed commercial printer, explained that the bank refused to share lead status with the rival shop. "It was a competitive bid and First Union won. You'd have to ask Chase, but if they don't lead, they don't want to play," said Wright, declining to discuss the matter further. He also declined to reveal other interested banks the company passed over to lead the loan. Wright said First Union won the mandate due to pricing. A Morgan Chase spokesman did not return calls seeking comment.

A $2 million piece of Emmis Communications' "B" tranche traded at 1001/4 last week, with dealers describing it as a strong credit. A trader added that the quotes are between 1001/8 to 100 3/8. One market watcher noted there was a large pool of buyers supporting the credit. The Indianapolis, Ind.-based company owns and operates more than 20 radio stations in New York City, Los Angeles, and Chicago as well as two radio networks. It most recently bought Lee Enterprises for $500 million. A company spokeswoman did not return calls seeking comment.

A $30 million piece of Regal Cinemas' pro rata traded at 71 last week, with optimism still hinged on news that investor Philip Anschutz and Los Angeles-based Oaktree Capital Management had purchased a large chunk of the bank debt. "When it was announced it clearly helped prop the paper up. You've got smart people interested in it," said one. Another market watcher had a different take on the trade, noting a slight dip compared to recent levels. "I don't think the seller checked many places," he remarked. The identity of the buyer and seller could not be confirmed by press time last week. Amy Miles, cfo of Regal, did not return calls for comment.