S&P rates NEP Europe loan B+

S&P said it assigned a B+ rating and 2 recovery rating to NEP Europe Finco BV's proposed €270 million first-lien term loan facility due 2023.

The 2 recovery rating indicates 70% to 90% expected default recovery.

The proceeds will be used to fund the company’s £124 million acquisition of Avesco Group plc, redeem acquired debt across several of its European subsidiaries and pay down its revolver balance, S&P said.

NEP Europe Finco is a wholly owned subsidiary of NEP/NCP Holdco Inc.

The company’s B corporate credit rating is unchanged and reflects a view of the company's strong market position, geographic diversity and long-term contracted revenue profile with high renewal rates, the agency said.

The rating also considers the company's high customer concentration within its broadcast segment, S&P said, and its increased exposure to economic cyclicality from its growing live events segment.

The company’s outlook is negative, reflecting expectations that NEP's covenant cushion would remain at less than 15% over the next two quarters, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.