Hong Kong, June 12, 2015– Moodys Investors Service has appointed a provisional (P)B1 to Nord Anglia
Education, Inc (NAE, B1 Stable)s proposed CHF235 million
senior protected bonds. The bonds are to be provided by Nord Anglia
Education Finance LLC, ensured by NAE, and will rank pari
passu and pro rata with the existing credit centers.
The provisional status of the rating will be removed upon the closing
of the deal at the anticipated terms and conditions, and upon
the receipt of last documentation.
The outlook for the ratings is stable.
These actions conclude the testimonial with instructions unsure, which
was started on 27 April 2015 in response to NAEs announcement that
it had gotten in into a conclusive arrangement with Meritas Schools Holdings,.
LLC (B3 stable) to obtain 6 schools.
NAE will certainly get the six schools for an aggregate purchase rate of around.
$575 million. NAE is moneying the deal with $125.
million in equity issuance, a $200 million increase in its.
existing term loan B, issuance of the CHF bonds, and existing.
The acquisition will certainly increase NAEs monetary take advantage of,.
however the companys stable, predictable company design and high.
earnings margins support the B1 business family score, said.
Joe Morrison, a Moodys Vice President and Elder Expert.
The protected credit center and the protected bonds make up the.
only debt in the business capital structure and are therefore rated.
at the same level as the business household score.
Please refer to Moodys news release on NAE released on 11 June.
2015 for comprehensive ratings rationales.
The steady outlook is based on expectation that NAEs monetary.
leverage will fall to a level that is in line with the B1 rating classification.
over the next 12-18 months absent massive, debt-funded.
Favorable pressure on the ratings could develop if the companys utilization.
rate and income per student enhance, causing the adjusted debt.
to EBITDA ratio remaining listed below 4.5x-5.0 x, and.
the business establishes a performance history of pursuing acquisitions in a more.
Unfavorable pressure on the scores might emerge if business conditions weaken.
and/or the company undertakes large-scale acquisitions such that.
its leverage– as determined by adjusted debt to EBITDA–.
does not trend down to 6.0 x over the next 12-18 months.
Moreover, a material wear and tear in the business liquidity.
position would heighten down pressure on the ratings.
The principal methodology utilized in this score was Company and Consumer.
Service Market released in December 2014. Kindly see the Credit.
Policy page on www.moodys.com for a copy of this approach.
Nord Anglia Education, Inc. is baseded in Hong Kong.
and runs 35 international premium schools in Asia, Europe,.
the Middle East, and North America, with over 23,900.
students ranging in level from pre-school through to secondary.
school. NAE also provides outsourced education and training agreements.
with governments and curriculum items through its Knowing Services.
department. For the 12 months ended 28 February 2015, NAE generated.
earnings of $521 million.
REGULATORY DISCLOSURES. …