Moody's may upgrade Luxfer

Moody's Investors Service said it placed the Luxfer Holdings plc's Caa3 corporate family rating on review for possible upgrade and withdrew the Ca rating on the company's 10 1/8% senior notes due 2009 given their cancellation.

The review follows the completion of Luxfer's financial reorganization, which included the cancellation of the notes and release of the company from all obligations and liabilities in exchange for £68.85 million of new notes. Noteholders also subscribed in cash for £3.05 million of additional new notes. The company paid noteholders £8.45 million, which was applied to purchase 87% of the total equity in the company, with the remainder retained by management and subject to restrictions.

The review will be concluded following an assessment of the company's fiscal 2006 results and outlook in the context of the revised debt capital structure, the agency said, adding that preliminary results for the 2006 fiscal year show a positive trend in performance, albeit with some divisional variability, and under the reorganization, leverage has been lowered, debt maturities have been extended and financial flexibility has been improved.

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