Hong Kong, June 12, 2015– Moodys Investors Service has assigned a provisional (P)B1 to Nord Anglia
Education, Inc (NAE, B1 Stable)s recommended CHF235 million
senior safe 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 facilities.
The provisional condition of the rating will be removed upon the closing
of the transaction at the anticipated terms, and upon
the invoice of final documents.
The outlook for the scores is steady.
These actions conclude the evaluation with direction unsure, which
was started on 27 April 2015 in response to NAEs announcement that
it had actually entered into a conclusive contract with Meritas Schools Holdings,.
LLC (B3 stable) to acquire six schools.
NAE will certainly obtain the six schools for an aggregate purchase price 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 increase NAEs monetary take advantage of,.
however the companys steady, predictable company model and high.
profit margins support the B1 business family rating, stated.
Joe Morrison, a Moodys Vice President and Senior citizen Expert.
The secured credit center and the safe bonds constitute the.
only debt in the companys capital structure and are for that reason rated.
at the same level as the corporate family score.
Please describe Moodys press release on NAE released on 11 June.
2015 for comprehensive scores reasonings.
The stable outlook is based upon expectation that NAEs financial.
take advantage of will fall to a level that is in line with the B1 score classification.
over the next 12-18 months absent large-scale, debt-funded.
Positive pressure on the scores might establish if the business utilization.
rate and income per student enhance, causing the adjusted financial obligation.
to EBITDA ratio remaining listed below 4.5x-5.0 x, and.
the business establishes a track record of pursuing acquisitions in a more.
Unfavorable pressure on the scores might occur if company conditions weaken.
and/or the business 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.
In addition, a material wear and tear in the companys liquidity.
position would increase down pressure on the ratings.
The principal approach made use of in this score was Business and Consumer.
Service Industry released in December 2014. Kindly see the Credit.
Policy page on www.moodys.com for a copy of this method.
Nord Anglia Education, Inc. is locateded in Hong Kong.
and operates 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 offers outsourced education and training contracts.
with governments and curriculum items through its Knowing Solutions.
department. For the Twelve Month ended 28 February 2015, NAE created.
profits of $521 million.
For ratings provided on a program, series or category/class of financial obligation,.
this announcement provides particular regulative disclosures in relation.
to each score of a consequently issued bond or note of the exact same series.
or category/class of financial obligation or pursuant to a program for which the scores.
are derived exclusively from existing ratings in accordance with Moodys.
rating practices. For scores released on a support carrier,.
this announcement provides particular regulatory disclosures in relation.
to the rating action on the support provider and in relation to each particular.
rating action for securities that derive their credit ratings from the.
support providers credit score. For provisional ratings,.
this statement supplies specific regulatory disclosures in relation.
to the provisional rating designated, and in relation to a definitive.
rating that might be designated subsequent to the final issuance of the financial obligation,.
in each case where the transaction structure and terms have actually not altered.
prior to the task of the definitive score in a way that would.
have influenced the rating. For more details please see the.
scores tab on the issuer/entity page for the respective issuer on www.moodys.com.
For any affected securities or ranked entities getting direct credit.
support from the primary entity(ies) of this rating action, and.
whose scores might alter as an outcome of this rating action, the.
associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this technique exist for the following disclosures,.
if appropriate to jurisdiction: Ancillary Services, Disclosure.
to rated entity, Disclosure from rated entity.
The following information supplements Disclosure 10 (Info.
Connecting to Disputes of Interest as needed by Paragraph (a)(1)(ii)(J).
of SEC Rule 17g-7) in the regulative disclosures made at.
the scores tab on the issuer/entity page on www.moodys.com.
for each credit rating:.
Moodys was not taken care of services aside from determining a credit.
rating in the most just recently ended monetary year by the person that paid.
Moodys to determine this credit rating.
Regulatory disclosures consisted of in this press release applyput on the credit.
rating and, if appropriate, the associated score outlook or rating.
Kindly see www.moodys.com for any updates on modifications to.
the lead rating analyst and to the Moodys legal entity that has released.
Kindly see the scores tab on the issuer/entity page on www.moodys.com.
for additional regulatory disclosures for each credit score.
The very first name below is the lead rating analyst for this Credit Rating.
and the last name listed below is the person mainly liable for approving.
this Credit Rating.
Vice President – Senior Expert
Business Finance Group
Moodys Investors Service Hong Kong Ltd.
24/F One Pacific Place
China (Hong Kong SAR.)
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SUBSCRIBERS: -LRB-852-RRB-Â 3551-3077 Moodys designates (P)
B1 to Nord Anglia Educations proposed senior secured bonds