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n Banco di Napoli SpA Rating: Baa1/BBB/BBB+

Metromedia Fiber Network and North American Van Lines (NAVL) will price European high yield transactions next week, while PTC and Global Telesystems will conclude premarketing of deals set for launch the week after. Although high yield investors, like those in high grade markets, are reluctant to commit new funds to the market, bankers report that deals offering value can still be priced before year end. This week's market rally will have offered borrowers further encouragement. NAVL should be first to the market, with a $250m equivalent 10 year non-call five dollar/euro transaction. The company has concluded roadshows in Europe and is currently on the road in the US. Bank of America and Chase Manhattan are leading the issue, which is part of the financing of NAVL's acquisition of Allied Pickford. Fibre optic network provider Metromedia will be raising $600m equivalent of 10 year non-call five funding via Salomon Smith Barney. The company has a $650m November 2008 bond outstanding, which recently yielded 10%, but this week tightened in towards 9.70%. The deal, set to follow US and European roadshows underway this week, received a boost when the company was upgraded by S&P from B to B+. The move was prompted by Bell Atlantic's decision last month to raise its stake in Metromedia. Moody's affirmed Metro- media's B2 rating but placed the company on positive outlook. Global Telesystems will conclude roadshows for its Eu300m seven and 10 year deal via DLJ at the end of next week. Formerly known as Hermes Europe Railtel, the company will price its transaction the following week. And Polish cellular company PTC International will conclude roadshows ahead of pricing of its Eu300m equivalent euro/dollar 10 year non-call five deal. Merrill Lynch will lead manage the offering of B2/B+ senior guaranteed notes. n

n Fiat Finance & Trade Ltd SA Guarantor: Fiat SpA

Fannie Mae cashed in on the ever-increasing global demand for triple-A government bond alternatives by launching a new $3bn three year deal and reopening its outstanding 10 year global benchmark note with a $5bn transaction, increased from an original $4bn. Led by Morgan Stanley Dean Witter, Goldman Sachs and Lehman, the deals were both priced on top of secondary paper and rode a wave of spread tightening across all US fixed income asset classes.

US FINANCE company Finova Corp joined the rush of US corporates into rallying bond markets this week with a $1.5bn global debut, the biggest offering of a raft of high grade issues totaling some $6bn. Led by Deutsche Banc Alex Brown and Salomon Smith Barney, the two tranche deal was increased from $750m and priced at the tight end of a revised price talk.

ABN AMRO is set to launch a Eu300m four year transaction for ProLogis, a US property company and warehousing company that wants to expand into Europe. The borrower is paying a margin on the bullet term loan that ratchets between 75bp and 95bp, depending of the rating of the guarantor. That guarantor is the US parent, ProLogis Trust. It currently has a triple-B rating, so the margin starts at 75bp. If it falls below investment grade the margin will increase to 95bp.

Jardine Fleming and Morgan Stanley Dean Witter increased Gas Authority of India's (Gail) GDR sale to $218m this week in response to strong demand for the shares. Following downward pressure on the underlying stock during the last week, the GDRs were priced at $9.67 - the equivalent of Rs70 a share from a close yesterday (Thursday) of Rs79. That is a discount of 12% to yesterday's close or a 9% discount to an four-day average.

The Italian treasury will launch its securitisation of delinquent social security contributions as three triple-A rated FRNs, without a government guarantee. Banks expect to receive a formal invitation to bid for the underwriting mandate today (Friday) or on Monday, with bids due in by next Friday.