S&P puts Pipe Acquisition on positive watch

Standard & Poor's said it placed its B- long-term corporate credit ratings on Pipe Acquisition Ltd. and its subsidiary Murray International Metals Ltd. on CreditWatch with positive implications following plans by Edgen Murray plc to raise equity by way of an IPO during the next few months.

At the same time, the CCC+ senior secured debt rating on the second-lien bonds issued by Pipe Acquisition was placed on CreditWatch with positive implications.

The CreditWatch placement reflects the agency's expectations that, if the IPO proceeds as planned, Edgen Murray will use $130 million of the proceeds to repay all of Pipe Acquisition's public debt, thereby improving the company's financial risk profile.

The agency noted that Pipe Acquisition is a sister company of Edgen Corp. (B-/stable), adding that the ratings on Edgen are unaffected by this rating action, because the IPO proceeds will be mainly used to repay all of Pipe Acquisition's public debt.

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