Fitch rates Interpipe notes B+

Fitch Ratings said it assigned Interpipe Ltd.'s $200 million 8 ¾% notes due in 2010 final senior unsecured B+ and recovery RR4 ratings.

The senior unsecured rating is in line with Interpipe's B+ long-term issuer default rating. Proceeds will be used to refinance short-term debt, pay a special dividend to adjust the capital structure and fund capital expenditure. Covenants in the loan agreement include an equal ranking of the loan with present or future unsecured obligations of Interpipe and a negative pledge, Fitch said. Interpipe also has a leverage ceiling of 3.5x. With a 2006 total debt-to-EBITDA ratio of 0.5x, the company has significant headroom under the covenant, the agency said.

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