Moody's rates Edgen notes B3

Moody's Investors Service said it assigned a B3 rating to Edgen Corp.'s proposed $105 million senior secured notes due 2011. Moody's also assigned a B3 senior implied rating, Caa2 issuer rating and SGL-3 speculative grade liquidity rating to Edgen. The outlook is stable.

The proceeds of the note offering, along with contributed equity of $21.6 million from Jeffries Capital Partners and $2.4 million from Edgen management, will be used to finance the acquisition of Edgen. Immediately following the closing of the acquisition, Edgen Acquisition Corp. will be merged into Edgen. Post the transaction, Edgen will be owned 81% by JCP and 19% by Edgen management.

Moody's said the ratings are supported by the recent improvement in Edgen's operating performance, which has been helped by steadily increasing prices, a shift to a higher value product mix and reduced labor costs.

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