Moody's may downgrade True Temper

Moody's Investors Service said it has placed the debt ratings of True Temper Sports Inc. on review for possible downgrade following an announcement of a definitive agreement to sell the company to a new financial sponsor.

Under review for possible downgrade are the senior implied rating at B1, the $15 million senior secured revolving credit facility due 2007 at Ba3, the $25 million senior secured term loan facility due 2007 at Ba3, the senior unsecured issuer rating at B2, and the $99.7 million 10.875% senior subordinated notes due 2008 at B3.

Moody's said the review reflects uncertainty regarding True Temper's capital structure and strategic direction in view of the ownership change.

The current equity sponsor, Cornerstone Equity Investors, has agreed to sell its stake in True Temper's parent, True Temper Corp., to Gilbert Global Equity Partners and its related entities. The transaction was announced on Feb. 2 and is expected to close within 90 days.

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