Committed Bank Credit Lines News

Standard & Poor's affirmed its single-'B'-plus corporate credit rating and single-'B'-minus subordinated debt rating on Friede Goldman Halter Inc. (FGH). The outlook remains negative. The ratings affirmation follows FGH's announcement that it has signed a definitive agreement to sell its vessel repair unit to Bollinger Shipyards Inc. (unrated) for $80 million. Proceeds from the all-cash transaction, which is expected to be completed in July 2000, will initially be used to reduce debt. As a result, the transaction is expected to improve FGH's capital structure and liquidity, although the liquidity benefits of the transaction may be somewhat offset by a reduction in FGH's operating cash flow and committed bank credit lines.