FKI plc http://www.alacrastore.com/company-snapshot/FKI_plc-1005872 Wednesday, July 23, 2008 6:18:33 PM 1005872 FKI plc en AlacraStore RSS Builder 1.0 30 http://www.alacrastore.com/storecontent/bir/479475bir/479475normFKI PLCIndustry General Corp.Crosby Group Inc.Amdura Corp.Harris Waste Management Group Inc.United KingdomServices: FKI is an international group of autonomous manufacturing businesses serving the material handling, hardware, engineering and process control markets8711342935353536355936123679369938243825382954133033251033329833392233392333441933451433451533451933531133599910IK7/16/2008 6:21:41 AM479475Company Profiles & FinancialsGale Company Profileshttp://www.alacrastore.com/storecontent/cs/61953cs/61953norm Spotlight on Invensys: Still High Yield, Despite What BondScore Says! We update our BondScore and Fundamental Analysis in the wake of Invensys's Second Quarter results to September ####. The results themselves were slightly shy of...3463YesD9Spotlight5251952bscore/researchcorpbscore/calcarticles4723961473Spotlight Reports500We update our BondScore and Fundamental Analysis in the wake of Invensys's Second Quarter results to September 2007.7BondScore26BondScore: Company/Industry42High Yield68Earnings Reports - Industrials/Consumer5/20/2008 2:16:13 PM6195361953Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/spcred/644794spcred/644794normThe latest Research Update from S&Pglobal4/25/2008 10:23:47 AM175Research Update644794United KingdomIndustrial MachineryEurope, Middle East, AfricaLatin AmericaAsiaEmerging MarketsCapital GoodsGlobal IssuersCorporationsResearch UpdateOn April 24, 2008, Standard&Poor's Ratings Services kept its 'BB' long-term corporate credit and senior unsecured debt ratings on U.K.-based engineering group FKI PLC on CreditWatch with negative implications, where they were placed on Feb. 5, 2008. This follows an announcement by the boards of FKI and U.K.-based Melrose PLC (not rated) that they have agreed a formal offer for Melrose to acquire the entire share capital of FKI in exchange for shares in Melrose and a cash consideration funded by proceeds from a Melrose share issue. It is not certain that this week's agreement will be approved by shareholders. The risk of a multinotch downgrade has reduced substantially in the event the bid is approved, given thatGBR20106020 201060 2010 20FKI PLC340774ASIAEMERGINGEUROMIDAFRLATAMERICAFKI@LNRESUPDGLOBISSCORPCapitalCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/644623spcred/644623normThe latest News from S&Pglobal4/24/2008 3:30:32 PM100News644623United KingdomIndustrial MachineryAsiaEmerging MarketsEurope, Middle East, AfricaLatin AmericaGlobal IssuersCorporationsCapital GoodsNewsLONDON (Standard&Poor's) April 24, 2008--Standard&Poor's Ratings Services said today it kept its 'BB' long-term corporate credit and senior unsecured debt ratings on U.K.-based engineering group FKI PLC on CreditWatch with negative implications, where they were placed on Feb. 5, 2008. "This follows an announcement by the boards of FKI and U.K.-based Melrose PLC that they have agreed a formal offer for Melrose to acquire the entire share capital of FKI in exchange for shares in Melrose and a cash consideration funded by proceeds from a Melrose share issue," said Standard&Poor's credit analyst Louise Newey. It is not certain that this week's agreement will be approved by shareholders. "The risk of a multinotch downgrade hasGBR20106020 201060 2010 20FKI PLC340774ASIAEMERGINGEUROMIDAFRLATAMERICAFKI@LNNEWSGLOBISSCORPCapitalCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/644624spcred/644624normThe latest Research Update from S&Pglobal4/24/2008 3:30:32 PM175Research Update644624United KingdomIndustrial MachineryAsiaEmerging MarketsEurope, Middle East, AfricaLatin AmericaGlobal IssuersCorporationsCapital GoodsResearch UpdateOn April 24, 2008, Standard&Poor's Ratings Services kept its 'BB' long-term corporate credit and senior unsecured debt ratings on U.K.-based engineering group FKI PLC on CreditWatch with negative implications, where they were placed on Feb. 5, 2008. This follows an announcement by the boards of FKI and U.K.-based Melrose PLC (not rated) that they have agreed a formal offer for Melrose to acquire the entire share capital of FKI in exchange for shares in Melrose and a cash consideration funded by proceeds from a Melrose share issue. It is not certain that this week's agreement will be approved by shareholders. The risk of a multinotch downgrade has reduced substantially in the event the bid is approved, given thatGBR20106020 201060 2010 20FKI PLC340774ASIAEMERGINGEUROMIDAFRLATAMERICAFKI@LNRESUPDGLOBISSCORPCapitalCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/moodys/PR_153880_21280moodys/PR_153880_21280htmlGlobal Credit Research Rating Action ## APR #### Rating Action: FKI plc Moody's places FKI's ratings under review with uncertain direction Approximately EUR ### million of rated debt affected Frankfurt, April ##, #### -- Moody's Investors...4/24/2008 12:57:30 AMhtmlFKI plcFKI plc21280150.0000NewsRating ActionPR_153880_21280Credit & Investment ResearchMoody's Global Credit Researchhttp://www.alacrastore.com/storecontent/cs/68205cs/68205norm Spotlight on FKI - Melrose Pours Oil on Troubled Waters The ongoing Tragi-Comedy that is the FKI credit story took a sharp turn for the better this morning with the announcement by ardent suitor, Melrose plc, that it had finally agreed...682053625YesD9Spotlight1952corphy4439726142High Yield73Spotlight Reports4/23/2008 12:12:05 AM500The ongoing Tragi-Comedy that is the FKI credit story took a sharp turn for the better this morning with the announcement that Melrose plc had finally agreed terms with FKI's beleaguered management team for a £478 million acquisition.68205Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/66224cs/66224norm FKI H###/## Tearsheet FKI's credit profile has been in malaise for the last few years, with inconsistent operating performance, a high debt burden and weak credit ratios.Following a major strategic review in June ####, FKI has identified...66224661YesC21Tearsheet1952tearsheets/premium39472613/9/2008 5:04:00 PM15066224Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/spcred/633061spcred/633061normThe latest Full Report from S&P2/28/2008 4:18:24 PMFull Report400global633061United KingdomIndustrial MachineryAsiaEmerging MarketsEurope, Middle East, AfricaLatin AmericaGlobal IssuersCorporationsCapital GoodsFull ReportDiversified business portfolio serving a wide range of end markets Generally good positions within a number of segments Core businesses benefiting from buoyant demand Intensifying competitive environment Exposure to cyclical end markets including general, industrial, construction, energy, and mining sectors Falling demand levels in some of its noncore businesses Some geographic reliance on North American markets The ratings on U.K.-based engineering group FKI PLC reflect strong competition. They also reflect the group's weakening pricing power, exposure to cyclical end markets, and leveraged financial structure. The group's aggressive financial risk profile is weak for the ratings, reflecting reduced cash flow measures and relatively high leverage. However, FKI's operational diversity in a number of different end markets, generally good positions within aGBR20106020 201060 2010 20FKI PLC340774ASIAEMERGINGEUROMIDAFRLATAMERICAFKI@LNFULLGLOBISSCORPCapitalCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/633064spcred/633064normThe latest Summary from S&P2/28/2008 4:18:24 PMSummary175global633064United KingdomIndustrial MachineryAsiaEmerging MarketsEurope, Middle East, AfricaLatin AmericaGlobal IssuersCorporationsCapital GoodsSummaryThe ratings on U.K.-based engineering group FKI PLC reflect strong competition. They also reflect the group's weakening pricing power, exposure to cyclical end markets, and leveraged financial structure. The group's aggressive financial risk profile is weak for the ratings, reflecting reduced cash flow measures and relatively high leverage. However, FKI's operational diversity in a number of different end markets, generally good positions within a number of market segments, and good short-term liquidity offset these weaknesses. Overall, the group is exposed to economic developments in the U.S., where it generates about one-half of its sales. The group's overall performance is impaired by its Logistex and Hardware divisions, which are affected by the weakening of the U.S. economy and currency fluctuations. Positively,GBR20106020 201060 2010 20FKI PLC340774ASIAEMERGINGEUROMIDAFRLATAMERICAFKI@LNSUMMARYGLOBISSCORPCapitalCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/629282spcred/629282normThe latest News from S&P2/5/2008 1:25:13 PMNews100global629282United KingdomIndustrial MachineryAsiaEmerging MarketsEurope, Middle East, AfricaLatin AmericaGlobal IssuersCorporationsCapital GoodsNewsSTOCKHOLM (Standard&Poor's) Feb. 5, 2008--Standard&Poor's Ratings Services said today that it had placed its long-term 'BB' ratings on U.K.-based engineering group FKI PLC on CreditWatch with negative implications, reflecting a continued weak performance and the possible adverse financial impact of a takeover by U.K.-based Melrose PLC (not rated), which has expressed interest in acquiring FKI. At the same time, the 'B' short-term ratings on FKI were affirmed. "The outcome of Melrose's approach to FKI remains uncertain. If a takeover takes place, the resulting entity could have a financial profile that is too weak for a 'BB' rating," said Standard&Poor's credit analyst Andreas Zsiga. "FKI's own performance is currently weak for the 'BB' level, andGBR20106020 201060 2010 20FKI PLC340774ASIAEMERGINGEUROMIDAFRLATAMERICAFKI@LNNEWSGLOBISSCORPCapitalCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/629283spcred/629283normThe latest Research Update from S&P2/5/2008 1:25:13 PMResearch Update175global629283United KingdomIndustrial MachineryAsiaEmerging MarketsEurope, Middle East, AfricaLatin AmericaGlobal IssuersCorporationsCapital GoodsResearch UpdateOn Feb. 5, 2008, Standard&Poor's Ratings Services placed its long-term 'BB' ratings on U.K.-based engineering group FKI PLC on CreditWatch with negative implications, reflecting a continued weak performance and the possible adverse financial impact of a takeover by U.K.-based Melrose PLC (not rated), which has expressed interest in acquiring FKI. At the same time, the 'B' short-term ratings on FKI were affirmed. The outcome of Melrose's approach to FKI remains uncertain. If a takeover takes place, the resulting entity could have a financial profile that is too weak for a 'BB' rating, assuming that a considerable share of the proposed £412 million offer will be debt financed. FKI's own performance is currently weak for the 'BB' level, andGBR20106020 201060 2010 20FKI PLC340774ASIAEMERGINGEUROMIDAFRLATAMERICAFKI@LNRESUPDGLOBISSCORPCapitalCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/cs/64888cs/64888norm FKI - Neither an LBO Nor a Trade Buyer Be!   The ongoing saga of one the least favoured capital goods names in Europe continued with the announcement by Melrose plc that it was the mysterious "White Knight" spending up on its sturdy...648884235YesD0Article1952corp4461397251LBO42High Yield2/5/2008 4:06:00 AM150The ongoing saga of one the least favoured capital goods names in Europe continued this morning with the announcement by Melrose plc that that it had made a preliminary approach to FKI about a possible offer of 70p per share.64888Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/moodys/CMT_0000421251moodys/CMT_0000421251htmlIssuer Comment2/5/2008 1:39:47 AMGlobal Credit Research Issuer Comment # FEB #### Issuer Comment: FKI plc Moody's comments on Melrose's possible offer for FKI plc - No change in rating Approximately EUR ### Million of rated Debt Affected In an announcement, made today,...FKI plc21280150.0000NewshtmlFKI plcCMT_0000421251Credit & Investment ResearchMoody's Global Credit Researchhttp://www.alacrastore.com/storecontent/cs/64784cs/64784norm FKI: Breaking Up May be Less Hard to Do! FKI reacted to press speculation and a rapid escalation in its share price this morning by confirming that it had received "an approach which may or may not lead to an offer being made for the...647842859YesD9Spotlight19524723942High Yield73Spotlight Reports2/1/2008 12:06:00 PM500We comment on FKI's statement this monring that that it had received "an approach which may or may not lead to an offer being made for the company", and the resulting tightening of its CDS spreads.corp4hy64784Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/56982cs/56982normWe discuss the options open to FKI following the disappointment of its Strategic Review outcome last month and provide a roadmap for bondholders and CDS investors to highlight the potential impact of these scenarios on their positions.6740YesD9Spotlight1952corphy4617243942High Yield73Spotlight Reports2/1/2008 11:04:24 AM56982 Spotlight on FKI: Breaking Up Is Hard To Do! We discuss the options open to FKI following the disappointment of its Strategic Review outcome last month. We discuss the possibility of an LBO approach, review recent market rumours of...50056982Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/moodys/COP_21280moodys/COP_21280htmlGlobal Credit Research Credit Opinion ## APR #### Credit Opinion: FKI plc FKI plc Loughborough, United Kingdom Ratings Category Moody's Rating Outlook Rating(s) Under Review Corporate Family Rating *Ba# Bkd Senior Unsecured *Ba#/LGD#...1/4/2008 1:43:00 AMhtmlFKI plcFKI plc21280150.0000NewsCredit OpinionCOP_21280Credit & Investment ResearchMoody's Global Credit Researchhttp://www.alacrastore.com/storecontent/moodys/PR_141572_21280moodys/PR_141572_21280htmlRating Action10/3/2007 12:27:33 AMGlobal Credit Research Rating Action # OCT #### Rating Action: FKI plc Moody's downgrades FKI to Ba#; outlook stable Approximately EUR ### million of rated debt affected Frankfurt, October ##, #### -- Moody's Investors Service today...FKI plc21280150.0000NewshtmlFKI plcPR_141572_21280Credit & Investment ResearchMoody's Global Credit Researchhttp://www.alacrastore.com/storecontent/spcred/589779spcred/589779norm7/10/2007 12:34:28 PMThe latest News from S&PNewsFKI LIFTING DEPEND SPEND STREAMS FALLING PENSION GBP48.9 UNCERTAINTIES HARDWARE NONCORE COMMODITIZATION INFLOW GBP36.6 EXPRESSIONS DIVISIONS EXPECT NEWEY DIVISION CHARACTERIZED MOMENTUM BIDDER OUTFLOW LOUISELONDON (Standard&Poor's) July 10, 2007--Standard&Poor's Ratings Services said today it revised its outlook on U.K.-based engineering group FKI PLC to negative from stable. At the same time, the 'BB' long-term and 'B' short-term corporate credit ratings were affirmed. "The outlook revision reflects the group's deteriorating cash flow measures and uncertainties relating to an offer for the majority of FKI's assets," said Standard&Poor's credit analyst Louise Newey. For the 12 months to March 31, 2007, FKI reported adjusted free operating cash outflow of ú36.6 million, compared with ú48.9 million inflow in fiscal 2006 (adjusted for operating leases and pension contributions), reflecting increased working capital spend and capital expenditure. The funds from operations-to-debt ratio slipped toFKI PLC20106020 201060 2010 20GBRglobal100.00340774589779Credit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/589780spcred/589780norm7/10/2007 12:34:28 PMThe latest Research Update from S&PResearch UpdateGENERATES GBP120 PRESSURIZING LIFTING PRINCIPALLY LOWEST PENSION FOCUSED BENEFIT GBP48.9 LEGACY CORE SUPPORTING RAW UNABLE MITIGATION RECOVERED NONCORE GBP125 TRADING SEPARATION CONFERS CYCLICAL GBP36.6 EXPRESSIONS EXPECT MUTED ADJUSTMENTS GBP507.8 RELATES PRICES REFINANCED GBP23.4 GBP495.9 DEPOSITS 3.8X ESCALATED DIVISION CHARACTERIZED GBP72.1 AMOUNTED 3.9X BIDDER OUTFLOW POSTRETIREMENT POSITIVELY REDUCES FKI LOGISTEX EXPOSED DEPEND SPEND STREAMS FALLING DOWNSTREAM CAPTIVE EUROBOND EASILY EXCLUDED SUPPORTED GBP45.3 KEY NATURAL CONTRIBUTED UPSWING UPSTREAM UNCERTAINTIES HARDWARE RECOGNIZED FIGURE DISADVANTAGE COMMODITIZATION INFLOW TRANSLATION FFO EUR DIVISIONS OPERATIONAL GBP30 INPUT GBP95.5 DEVELOPMENTS CONSTRAIN MOMENTUM EBITDA LEVERAGEDOn July 10, 2007, Standard&Poor's Ratings Services revised its outlook on U.K.-based engineering group FKI PLC to negative from stable. At the same time, the 'BB' long-term and 'B' short-term corporate credit ratings were affirmed. The outlook revision reflects the group's deteriorating cash flow measures and uncertainties relating to an offer for the majority of FKI's assets. For the 12 months to March 31,2007, FKI reported adjusted free operating cash outflow of ú36.6 million, compared with ú48.9 million inflow in fiscal 2006 (adjusted for operating leases and pension contributions), reflecting increased working capital spend and capital expenditure. The funds from operations (FFO)-to-debt ratio slipped to 13.1% at March 31, 2007, from 15.1% in 2006, which is below theFKI PLC20106020 201060 2010 20GBRglobal100.00340774589780Credit & Investment ResearchS&P Credit Research