Edgen/Murray plans to repay 9 7/8% notes, floaters due 2010

By Jennifer Chiou

New York, April 11 - Edgen/Murray, LP said it intends to retire the long-term debt of its subsidiaries, including Edgen Murray Corp.'s $136 million of 9 7/8% senior secured notes due 2011 and Pipe Acquisition Finance Ltd.'s $130 million of senior secured floating-rate notes due 2010.

Edgen Murray II, LP, a new holding company formed by Jefferies Capital Partners IV, LP and its general partner to recapitalize and refinance Edgen/Murray, entered into a commitment letter with Lehman Brothers and Jefferies Finance LLC to provide $500 million in debt financing, a portion of which will be used to retire the notes.

Jefferies Capital Partners, funds managed by Jefferies Capital Partners, other institutional co-investors and Edgen/Murray management are expected to purchase Edgen/Murray's subsidiaries from its existing partners.

The company added that it plans to repay any amounts outstanding under its subsidiaries' senior credit facilities, also using proceeds from debt financing.

Baton Rouge, La.-based Edgen/Murray distributes high-performance carbon and alloy steel products.

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