Moody's may upgrade Russell

Moody's Investors Service said it placed Russell Corp.'s Ba3 $300 million senior secured revolving facility due 2007, B2 $250 million senior unsecured notes due 2010 and B2 corporate family rating on review for possible upgrade following the announcement of the sale of the company to Berkshire Hathaway for $18 per share in cash, or about$600 million. The transaction is expected to close in the third quarter of 2006.

The revolver and the note indenture contain change-of-control provisions. The unsecured notes are also callable beginning May 1.

Moody's said its review will focus on the potential strategic benefits Russell may gain operating within the Berkshire Hathaway organization, the financing structure of the transaction and the nature of the support, if any, that may be provided by Berkshire.

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