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disclosed a $2 billion bond placement Friday and had its shares upgraded by a major Wall Street research shop.

Nortel filed to sell $2 billion of senior unsecured notes to institutional investors through the rule 144A market in the U.S. and in Canada. Nortel said it will use $1.3 billion of the proceeds to repay a one-year credit facility secured by its Nortel Networks Ltd. Unit in February.

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The rest of the money will go to general corporate purposes, including the replenishment of accounts following a $150 million repayment of a series of June 2006 notes issued by its finance subsidiary.

Meanwhile, Sanford Bernstein raised Nortel to market perform from underperform Friday, saying the stock, which has fallen 29% since the start of the year, is trading at its breakup value. Bernstein's analyst warned that the company isn't done burning cash, but said most of the downside is currently priced in.

Nortel shares closed at $2.20 on Thursday.