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SPECULATION that the underwriting phase of the $365m senior debt package backing the MBO of magazine distributor Hebdomag has failed to attract a single bank was strongly denied by lead arranger DLJ yesterday (Thursday). The loan market has been abuzz this week over talk that Hebdomag -- DLJ's first sole-arranged European loan -- had crashed after each of the nine banks invited to join the deal refused the offer.

MERRILL Lynch has completed the highly successful offering of convertible bonds for Airtours, the world's largest holiday tour operator. The lead manager marketed the £250m deal, which was launched two weeks ago, to dedicated convertible investors. The issue is a boost for the UK convertible market, which has been relatively quiet this year, and could be a precursor to a busier 1999.

China Standard Chartered Bank is in the market with a Rmb50m one year loan for Shanghai Tyre & Rubber Co.

China * People's Republic of China

Australia Lead arrangers BA Australia, Citibank NA (Australia), Credit Suisse First Boston and Westpac Banking Corp have launched the A$1.27bn acquisition financing for AEP Resources Citipower 1 to sub-underwriters.

INVESTORS' discriminating behaviour when it comes to Latin bond issues was demonstrated this week when two blue chip offerings were snapped up, while two Argentine corporates failed to get deals off the ground. Uruguay was able to add $50m to its November, $150m Chase-led issue of five year Eurobonds. The bonds were priced at 330bp, about a 10bp concession to secondary trading levels.

BANK AUSTRIA this week priced its innovative partially funded securitisation of bonds from its investment book. Lead managed by Citibank and Salomon Smith Barney, the transaction achieves substantial regulatory capital relief for Bank Austria on $1.2bn of bonds originally bought by Creditanstalt, which merged with Bank Austria in September. "Bank Austria has no shortage of capital, but this deal is part of our strategy to ensure that we can develop the business while retaining more than adequate levels of capital," said Mark Bowles, senior director at Bank Austria in London. "We have very good skills as an ABS investor, and can originate this kind of assets effectively, but we want to reduce the capital they absorb."