NEW YORK - Morgar Guaranty Trust Co. has been tapped to arrange $1.1 billion it loans to finance Eaton Corp.'s purchase of a Westinghouse Electric Corp. unit that makes electrical devices.

The deal is the latest in a string of acquisitions this summer providing fresh business for lenders. Many of the acquisitions are related to the sale or spinning off of subsidiaries by companies that are narrowing their focus.

John Carmont, treasurer of Cleveland-based Eaton, said Morgan will provide some of the funds itself and syndicate the rest of the loan on a best-efforts basis. He declined to comment on the financing terms.

|No Concerns'

"We have very strong bank relationships, so we have no concerns about whether the money's there or not," he said.

"We expect closing toward the end of the year, so we have a considerable amount of time," he said.

The financing represents new business for Morgan. which declined to comment. Eaton arranged its current $100 million in bank credit lines itself, rather than though an agent bank, Mr. Carmont said.

Pittsburgh-based Westinghouse announced last week that it will sell its electrical distribution and industrial control manufacturing businesses to Eaton, a diversified manufacturer, for $1.1 billion.

Could Fall Through

Eaton's purchase could fall through if Siemens AG decides to make a competing offer for the Westinghouse assets, under a right of first refusal the German company has from a 1989 contract with Westinghouse.

Other companies that are arranging loans for recently announced acquisitions include Louisiana Land and Exploration Co., the Stephens Group of Arkansas, and Quorum Health Group Inc. of Nashville, Tenn.

Supports Pending Purchases

Louisiana Land has a fully underwritten credit of $790 million, said a banker. Morgan is the lead manager of the credit, and Chemical Banking Corp.'s Texas Commerce unit and NationsBank are co-managers, said a spokeswoman for the New Orleans-based company.

The financing supports the company's pending purchases of oil and gas assets from Nerco Inc. for $353.7 million in cash, and North Sea oll assets from British Gas Exploration Production Ltd. for $232 million in cash. Some of the debt will be refinanced, said the spokeswoman, who declined to elaborate.

NationsBank Rumor

NationsBank Corp. is rumored to have underwritten a financing of around $400 million to $500 million for the Stephens Group's purchase of the Donrey Media Group.

Donrey is a privately held company based in Las Vegas with newspapcr, cable television, and advertising holdings. Its market value has been estimated at $950 million. Stephens Group is the parent of Stephens Inc., a Little Rock-based Brokerage firm, as well as other holdings of the Stephens family.

Stephens and Donrey representatives declined to comment on the price or financing of the acquisition.

Amsouth Tapped

Quorum has tapped Amsouth Bank to lead a $275 million bank line to support the group's $335 million cash purchase of 10 hospitals from Charter Medical Corp.. according to Bob Yaeger, chief financial officer. Amsouth currently leads an unused $100 million line, which has five other banks in it, he said.

Terms of the new facility have not been finalized, but it is expected to be a three-year revolving credit that will convert to a four-year term loan, with a borrowing rate expected to start around 225 basis points over the London interbank offered rate, subject to change based on the company's leverage. said Mr. Yaeger.

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