Moody's: Great Lakes Dredge on review for downgrade

Moody's Investors Service said it placed the ratings of Great Lakes Dredge & Dock Corp. under review for possible downgrade.

The affected ratings include $155 million 11¼% senior subordinated notes due 2008, rated B3; an $80 million senior secured revolving credit facility due 2006, rated Ba3; and a $2 million senior secured term loan A due 2003, rated Ba3.

The agency said the review was prompted by the company's announcement that it has signed a definitive agreement along with its current majority-owner, Vectura Holding Co. LLC, a portfolio company of Citigroup Venture Capital Ltd., to sell the company to an affiliate of Chicago-based private equity investment firm, Madison Dearborn Partners LLC for $340 million in cash.

Moody's said the review of the senior implied rating will focus on the impact of the acquisition financing on the capital structure and credit statistics of the company post-acquisition.

To the extent that the acquisition will be funded by debt, the ratings will be subject to downward revision if increased leverage were to put additional stress on the company's debt protection measures or cash flow generation, the agency said.

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