Pushbacks from LBO bonds investors

TIAA-CREF, which oversees $414 billion in retirement funds for teachers and college professors, is boycotting some debt offerings used to finance LBOs. Fidelity International, a unit of the world's largest mutual fund company, and Lehman Brothers Asset Management LLC, the money-management arm of the third-biggest bond underwriter, say they're avoiding debt from buyouts. Investors are getting skittish just as private-equity firms led by Kohlberg Kravis Roberts & Co. and Blackstone Group Inc. prepare to sell $300 billion of bonds and loans to finance LBOs, according to Bear Stearns Cos. In the past two weeks alone, more than a dozen companies were forced to postpone or restructure debt sales. Last week, WS bond underwriters postponed the sales of U.S Foodservice Yesterday, WS bond underwriters called off a deal of $1.5 bil sale of junk bonds for the leverage buyout of ServiceMaster Co. Bond investors in the case of ServiceMaster Co balked at provisions in the ServiceMaster bonds, known as PIK toggle. http://online.wsj.com/article/SB118359370108357607-search.html?KEYWORDS=servicemaster&COLLECTION=wsjie/6month In the case of U.S Foodserivce - equtiy bridge loans