High Yield Calendar: $2.320 billion and €5.0 billion deals being marketed

WEEK OF OCT. 2

NXP BV/NXP FUNDING LLC (Philips Semiconductor) €4.5 billion equivalent in five tranches: approximately $1.5 billion senior secured floating-rate notes due 2013 (Ba2/BB+), non-callable for one year, price talk Libor plus 275 bps; approximately €1 billion senior secured floating-rate notes due 2013 (Ba2/BB+), non-callable for one year, price talk Euribor plus 275 bps; $750 million to $1.0 billion senior secured fixed-rate notes due 2014 (Ba2/BB+), non-callable for four years, price talk 7 7/8% area; approximately $1.3 billion senior unsecured fixed-rate notes due 2015 (B2/B+), non-callable for five years, price talk 9¼% to 9½%; €500 million senior unsecured fixed-rate notes due 2015 (B2/B+), non-callable for five years, price talk 8½% area; Morgan Stanley, Deutsche Bank Securities, Merrill Lynch & Co. (joint), Banc of America Securities LLC, ABN Amro, Mizuho, HSBC (joint leads), BNP Paribas, Rabo (co-managers); Rule 144A/Regulation S; to refinance $4.5 billion bridge loan incurred to fund the acquisition of 80.1% of Philips Semiconductors by Kohlberg Kravis Roberts & Co. with Bain Capital, Silver Lake Partners, Apax and AlpInvest Partners; microchip manufacturer based in Eindhoven, the Netherlands; books close at London close on Wednesday for European accounts, mid-afternoon Wednesday for U.S. accounts; expected to price Thursday.

PEABODY ENERGY CORP. $825 million senior notes (Ba1/BB) due 2016, price talk 7½% area, and 2026, price talk 62.5 bps (absolute yield) over 10-year notes; Morgan Stanley, Lehman Brothers (joint books), ABN Amro, Banc of America Securities LLC, BMO Capital Markets, BNP Paribas, Calyon Securities, Citigroup, Credit Suisse, HSBC, PNC Capital Markets, LLC, RBS Greenwich Capital Markets, Wells Fargo Securities (co's); off the shelf; both tranches non-callable for life with make-whole provisions; to help fund acquisition of Australian coal company Excel Coal Ltd. for $1.34 billion plus assumed debt of about $190 million; St. Louis-based coal company; pricing Thursday.

SOFTBANK CORP.: €500 million seven-year senior unsecured notes (Ba2/BB-); Deutsche Bank Securities (books); Regulation S; non-callable for four years; 35% equity clawback; Tokyo-based telecommunications, technology and media company will use proceeds to refinance short-term debt; price talks 7 7/8% to 8 1/8%; expected to price late Thursday or early Friday.

BERTIN LTDA.: $150 million offering of 10-year senior notes (Ba3/B+); Credit Suisse, Morgan Stanley, Standard Bank; Rule 144A/Regulation S; non-callable; roadshow started on Sept. 26, in United States during week of Oct. 2; to refinance existing debt, capital expenditures, general corporate purposes; Brazilian beef exporter; price talk 10¼%-10 3/8%; pricing expected Thursday.

COMPUCOM SYSTEMS INC.: $175 million eight-year senior notes (B2/B); Citigroup (books), Jefferies & Co., PNC (co's); Rule 144A; non-callable for four years; $125 million of proceeds to repay debt, $45 million to pay a dividend to sponsor Platinum Equity LLC; roadshow Sept. 27 to Oct. 5.

BANCO SCHAHIN SA: Dollar-denominated notes due 2016 (expected B2); Dresdner Kleinwort; Rule 144A/Regulation S; non-callable for five years; Brazilian commercial bank with headquarters in Sao Paulo, Brazil; presently in the market.

AMERICAN ENTERTAINMENT PROPERTIES CORP.: $200 million (decreased from $250 million) senior floating-rate notes due 2014 (Caa1/B-); Bear Stearns & Co.; Rule 144A; callable after two years at 103; three-year 35% equity clawback; proceeds, together with cash and cash equivalents, to pay a dividend to a newly formed corporation that will become the company's parent; parent of Las Vegas-based American Casino & Entertainment Properties (ultimate parent is American Real Estate Partners, LP); pro forma Libor plus 500 bps.

WEEK OF OCT. 9

MAJAPAHIT HOLDING BV (PT PLN): Benchmark-sized offering of notes due 2016 (expected B1/confirmed BB-); UBS; Rule 144A/Regulation S; financing subsidiary of Jakarta-based Indonesian state-owned electric utility PT Perusahaan Listrik Negara (PLN); expected to price at a discount to the sovereign; roadshow in Hong Kong on Oct. 5, Singapore on Oct. 6, London on Oct. 9, New York Oct. 10-12.

WEEK OF OCT. 16

WEST CORP. $1.10 billion in two tranches (expected ratings Caa1/B-): $650 million senior notes due 2014, non-callable for four years, pro forma 9¼%, and $450 million senior subordinated notes due 2016, non-callable for five years, pro forma 11%; Deutsche Bank Securities, Lehman Brothers, Banc of America Securities LLC (joint books), Wachovia Securities (co); also $2.3 billion credit facility; to help fund LBO by Thomas H. Lee Partners and Quadrangle Group LLC; Omaha, Neb., provider of outsourced communication solutions; roadshow Oct. 4-Oct. 16; pricing Oct. 16.

PAPELES INDUSTRIALES DE MICHOACAN SA DE CV: $320 million senior guaranteed notes due 2016 (Ba3/BB-/BB-); Citigroup; Rule 144A/Regulation S (no registration rights); non-callable for five years, three-year equity clawback; for acquisition finance; issuer was formed when Kimberly-Clark de Mexico SA de CV spun off and divested control of its paper and notebooks division; to price during the week of Oct. 16

EXPECTED FALL BUSINESS

MICHAELS STORES INC.: Approximately $1.4 billion expected to be split equally between senior notes (B2) and senior subordinated notes (Caa1); Deutsche Bank Securities, JP Morgan, Banc of America Securities LLC; also $3.4 billion credit facility; to help back leveraged buyout by Bain Capital and The Blackstone Group; Irving, Texas, specialty retailer of arts, crafts, and decor merchandise; expected fall business.

ENCORE MEDICAL FINANCE LLC: $215 million senior subordinated notes (B2); Banc of America Securities LLC; also $375 million credit facility; to help fund acquisition by The Blackstone Group; subsidiary of Encore Medical Corp., an Austin, Texas-based orthopedic implant manufacturer; expected to price by the close of the fourth quarter.

ENERGY PARTNERS LTD.: $730 million senior unsecured notes; Banc of America Securities LLC; to fund $2.2 billion acquisition of Stone Energy by Energy Partners, Ltd.; Stone Energy is an independent oil and gas company based in Lafayette, La.; Energy Partners is an independent oil and natural gas exploration and production company based in New Orleans; expected September business.

MEDIMEDIA: $150 million senior subordinated notes; Goldman Sachs & Co.; also $250 million credit facility; to help fund acquisition of the company by Vestar from Cinven, The Carlyle Group and Apax Partners; Chatham, N.J.-based specialty health care communications company, expected fall 2006 business.

ON THE HORIZON

ARAMARK CORP.: $2.470 billion bonds including $770 million senior subordinated notes and $1.7 billion senior cash pay and/or senior PIK notes, with 50% of the principal having to come in the form of PIK notes, also $4.605 billion credit facilities led by JP Morgan and Goldman Sachs; to fund the approximately $8.3 billion LBO of the company by chairman and chief executive officer Joseph Neubauer together with funds managed by sponsors by Thomas H. Lee Partners LP, Warburg Pincus LLC, JPMorgan Partners, GS Capital Partners and CCMP Capital Advisors, expected to close late 2006 or early 2007; Philadelphia-based professional food, hospitality and facility management services company.

BUFFETS INC.: $330 million bonds, Credit Suisse expected to be involved; also $610 million credit facility via Credit Suisse Securities and UBS Investment Bank; to help fund $876 million acquisition of Greer, S.C.-based Ryan's Restaurant Group, Inc. by an investment partnership organized by Caxton-Iseman Capital, Inc. and senior management of Buffets; Buffets is an Eagan, Minn.-based owner and operator of buffet-style restaurants; expected fourth quarter business.

FREESCALE SEMICONDUCTOR INC.: $6.15 billion senior unsecured notes and/or senior subordinated notes; also $4.25 billion senior secured credit facility via Citigroup, Credit Suisse, JPMorgan, Lehman Brothers, UBS; to help fund LBO by private equity consortium led by The Blackstone Group and including The Carlyle Group, Permira Funds and Texas Pacific Group, total equity value of the transaction is $17.6 billion; also includes $7.15 billion of equity equity contribution; bonds are backed by $4.35 billion senior unsecured bridge loan and $1.8 billion senior subordinated unsecured bridge loan; Austin, Tex., semiconductor company; subject to shareholder and regulatory approval.

HANESBRANDS INC.: $500 million of senior notes; Morgan Stanley, Merrill Lynch & Co.; also $2.6 billion senior secured credit facility; substantial portion of the proceeds from the term loan and the bond offering to pay a dividend to Sara Lee prior to the spinoff; following the spinoff, Winston-Salem, N.C.-based Hanesbrands will operate as a publicly traded apparel company; expected third-quarter business.

HCA INC.: Up to $5.70 billion senior secured second-lien notes; also $16.80 billion credit facility via Bank of America, Citigroup, JPMorgan, Merrill Lynch, Deutsche Bank, Wachovia Securities; to help fund LBO by Bain Capital, Kohlberg Kravis Roberts & Co., Merrill Lynch Global Private Equity and company founder Thomas F. Frist Jr.; Nashville health care services company; expected fourth quarter of 2006.

INFOR GLOBAL SOLUTIONS: High-yield notes (Caa2) to refinance a $1.425 billion senior subordinated bridge facility; also $2.4 billion credit facility via JP Morgan, Credit Suisse and Merrill Lynch & Co. joint bookrunners; part of financing to help fund the acquisitions of Systems Union Group and SSA Global, finance the combination of Infor and Extensity - both currently Golden Gate Capital portfolio companies - and to refinance debt at all four companies; Infor is an Alpharetta, Ga.-based software provider.

KINDER MORGAN INC.: $14.5 billion of funded debt including senior and/or subordinated notes; to help fund proposed $22 billion buyout of the company by management and equity investors led by Goldman Sachs, Citigroup, Deutsche Bank, Wachovia, Merrill Lynch, expected to be completed by early 2007; Houston-based energy infrastructure provider.

NCO GROUP INC.: $365 million of senior subordinated notes; also $550 million credit facility; Morgan Stanley and JP Morgan are the lead banks on the debt financing; to help fund $1.26 billion LBO of the company by chairman and chief executive officer Michael J. Barrist in partnership with One Equity Partners II LP, expected to be completed in the fourth quarter; Horsham, Pa., provider of business process outsourcing services.

NEG OIL & GAS LLC: $200 million eight-year senior notes; Bear Stearns & Co., Citigroup (joint books); non-callable for four years; registered; proceeds, together with the concurrent initial public offering by NEG, Inc., will be used to repay part of the revolver, repay debt owed to American Real Estate Partners, LP and fund a distribution to American Real Estate Partners; Dallas independent oil and natural gas exploration production company; expected in September or October.

PT POLYFIN CANGGIH: $75 million senior secured notes due 2011 and 250 warrants to purchase shares; Jefferies & Co.; private placement and Regulation S; non-callable for two years; two-year 35% equity clawback; to repay existing debt, for working capital and general corporate purposes; producer of polyester chips and synthetic yarn in Indonesia, to be incorporated in The Netherlands (guarantors are incorporated in Indonesia, Singapore and the British Virgin Islands; the company's registered office is in Bandung, Indonesia); September business.

RITE AID CORP: Six-year notes and term loan debt to fund the acquisition of Jean Coutu Group USA Inc., transaction expected to close late 2006 or early 2007; Rite Aid is a Camp Hill, Pa., national drugstore chain.

SALLY BEAUTY CO. $710 million: $430 million senior unsecured notes and $280 million senior subordinated unsecured notes; also $1.54 billion credit facility led by Merrill Lynch, JPMorgan, Bank of America and Morgan Stanley; proceeds to help fund the special cash dividend that Sally Beauty will be paying Alberto-Culver as part of the spinoff, transaction expected fourth quarter; Melrose Park, Ill., beauty supplies distribution business.

TROPICANA ENTERTAINMENT: $975 million in high-yield bonds; also $2.175 billion in credit facilities; Credit Suisse is the lead bank on the debt transactions; in connection with acquisition of Aztar Corp.; a newly formed subsidiary of Columbia Entertainment, a Fort Mitchell, Ky., owner, developer and operator of hotel properties and casinos; expected to close by the end of 2006.

UNIVISION COMMUNICATIONS INC.: $2 billion high-yield bonds via Credit Suisse (Deutsche Bank, Bank of America Securities and Wachovia expected to be involved), also new $8.25 billion credit facility; to help back leveraged buyout by Madison Dearborn Partners, Providence Equity Partners, Texas Pacific Group, Thomas H. Lee Partners and Saban Capital Group; expected to close in spring 2007; Los Angeles-based Spanish-language media company.

VERIZON DIRECTORIES DISPOSITION CORP. (VERIZON COMMUNICATIONS INC.): $3 billion to $4 billion of high-yield bonds as part of $8 billion overall debt financing to fund spinoff of directories business; New York City-based telecommunications company.

ROADSHOWS

Started Sept. 19: NXP BV/NXP FUNDING LLC (Philips Semiconductor) €4.5 billion equivalent; Morgan Stanley, Deutsche Bank Securities, Merrill Lynch & Co.

Started Sept. 27: SOFTBANK CORP.: €500 million seven-year senior unsecured notes; Deutsche Bank Securities

Sept. 27-Oct. 5: COMPUCOM SYSTEMS INC.: $175 million eight-year senior notes; Citigroup

Oct. 4-16: WEST CORP. $1.10 billion; Deutsche Bank Securities, Lehman Brothers, Banc of America Securities LLC

Starts Oct. 5: MAJAPAHIT HOLDING BV (PT PLN): Benchmark-sized offering; UBS

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