BT Securities, a subsidiary of the Bankers Trust Company, acted as lead manager for the underwriting.

Wolfgang Demisch, an analyst for BT Securities, said that weapons businesses had been selling for about 40 to 50 percent of revenue.

People familiar with the case identify that executive as Gary Mesner, then a managing director with BT Securities.

The issue, which was sold at competitive bid, was won by BT Securities.

Eric Goldstein, a stock analyst with BT Securities, also likes Breed - but for other reasons.

The notes are rated below investment grade and are being offered through BT Securities.

A bid from a group led by BT Securities won the issue, which consists of serial bonds with maturities from 1992 to 2011.

"We recognize that the market is a bit unsettled right now," said Gerald Rosenfeld, managing director at BT Securities.

BT Securities, the Bankers Trust unit handling the sale, expects to earn fees of $4.5 million to $5.25 million.

"The scale of the problem by historic standards is not exceptional," said Wolfgang Demisch, an analyst with BT Securities.