Moody's may lift Claymont

Moody's Investors Service said it placed Claymont Steel, Inc.'s ratings under review for possible upgrade today following the announcement that Evraz Group SA (Ba2 corporate family rating), through its wholly owned subsidiary Titan Acquisition Sub, Inc., has entered into a definitive agreement, under which Evraz will acquire Claymont Steel for $23.50 per share, for an aggregate purchase price of $565 million, including debt.

The agency said that the board of directors of Claymont has unanimously recommended that the shareholders accept the offer. H.I.G. Capital LLC, which owns 42.6% of Claymont's common stock, has committed to tender its shares in the offer.

Moody's said its review will focus on the legal structure and financing arrangements for the acquisition and the strategic fit of the two companies, noting that if Claymont's debt is retired as a result of the transaction, its ratings will be withdrawn.

The following ratings were placed under review for possible upgrade: B2 corporate family rating; B2 probability of default rating; B3$105 million of 8.875% senior unsecured notes due 2015 while the company's SGL-1 speculative-grade rating was affirmed.

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