Bombardier upsizes drive-by megadeal, Riverbed, Nathan’s also price to cap $6.6 billion week

By Paul A. Harris and Paul Deckelman

New York, Feb. 27 – After a slow start to the week, the high-yield primary market finished with a flourish on Friday, as three issuers brought a total of $2.91 billion of new junk-rated, dollar-denominated paper to market.

The big deal of the day came from familiar junk issuer Bombardier, Inc., the Canadian aircraft and railroad equipment manufacturer. It priced an upsized and quickly shopped $2.25 billion two-part issue, consisting of 3.5-year and 10-year notes.

Both halves of that deal firmed when they reached the aftermarket, with the 10-year notes among the most heavily traded bonds of the day.

Project Homestake Merger Corp., a special-purpose vehicle for the financing of the pending leveraged buyout of Riverbed Technology, Inc., priced a $525 million issue of eight-year notes, in a deal that was twice downsized before it finally got done. The California-based network technology company’s new bonds firmed smartly, also in heavy trading, when they were freed for secondary dealings.

There was also a smallish drive-by offering from hot dog restaurant and food service company Nathan’s Famous, Inc.

Friday was the second straight session of active new-deal issuance and brought the week’s total to just under $6.6 billion in eight tranches, according to data compiled by Prospect News – just a little more than the roughly $6.5 billion that priced, also in eight tranches, last week.

In general, junk names were seen firmer by around ¼ to ½ point.

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