Bankers said general syndication closed last week on the highly demanded $820 million deal led by Morgan Stanley Dean Witter and Credit Suisse First Boston for First Reserve Corp. and Odyssey Investment Partners' leveraged buyout of energy equipment provider Dresser Equipment and the bond component of the deal was upsized last week from $250 million to $300 million. "The high-yield [bond] market is open for decent non-telecom issuers," noted one banker, explaining that the company decided to upsize the bond deal rather than increase the "B" tranche as increased demand for industrial paper resulted in attractive pricing for issuers. A banker noted the bonds were sold with a coupon of 9 3/8%--what he considered a "record" for a BB credit. First Reserve Corp. and Odyssey Investment Partners did not return calls by press time.
Dresser Deal Oversubscribed; Bond Piece Upsized