NEP/NCP Holdco, Inc: Update to credit analysis

Moody's says NEP's proposed amend&extend transaction would be considered a distressed exchange - Announcement – 2023/12/11 – US$ 180.00

NEP/NCP Holdco, Inc: Update to credit analysis - Credit Opinion – 2022/11/22 – US$ 250.00 – ...NEP/NCP Holdco, Inc.'s (NEP) credit profile (B3 stable) reflects the company's highly levered capital structure, weak interest coverage and highly capital-intensive business model that restrains free cash flow. The company has a moderately aggressive acquisition strategy which may prevent sustained deleveraging. We expect Moody's adjusted Debt/EBITDA to be high, in the 6x-6.5x range over the next 12-18 months, despite earnings growth. The capital intensity of NEP's business combined with significant interest expense leaves it with limited, and historically negative, free cash flow and weak interest coverage. Given the sponsor ownership, the potential for future leveraging events are high, and this further constrains the rating. Nevertheless, NEP's ratings are supported by its strong global position in the niche video production industry and a diversified blue-chip customer base with long- standing relationships and low customer concentration. NEP's fleet of mobile broadcast trucks and engineering...

NEP/NCP Holdco, Inc: Update following CFR upgrade to B3, term loan add-on issuance - Credit Opinion – 2021/11/03 – US$ 250.00 – ...NEP/NCP Holdco, Inc.'s (NEP, B3 stable) credit profile reflects the company's highly levered capital structure and highly capital-intensive business model that restrains free cash flow. The company has a moderately aggressive acquisition strategy which may prevent sustained deleveraging. We expect Moody's adjusted Debt/EBITDA to be high, in the 6x - 6.5x range over the next 12-18 months, despite earnings growth. The capital intensity of NEP's business combined with significant interest expense leaves it with limited, and historically negative, free cash flows and weak interest coverage. Given the sponsor ownership, the potential for future leveraging events are high, and this further constrains the rating. Nevertheless, NEP's ratings are supported by its strong global position in the niche video production industry and a diversified blue-chip customer base with long-standing relationships and low customer concentration. NEP's fleet of mobile broadcast trucks and engineering expertise provide...

Moody's rates NEP's term loan at B3 - Rating Action – 2021/11/03 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

NEP/NCP Holdco, Inc: Update following rating upgrade and outlook change - Credit Opinion – 2020/10/12 – US$ 250.00 – ...NEP/NCP Holdco, Inc.'s ("NEP") credit profile is constrained by: (1) the company's highly leveraged capital structure, with debt-to-EBITDA leverage (Moody's adjusted) of 11.2x for the LTM period ended June 30, 2020, which could considerably increase due to the significant EBITDA deterioration in the first half of FY 2020; (2) operating headwinds in the live events segment, including the risk for protracted revenue and earnings contraction due to the COVID-19 pandemic and uncertainties around the global macroeconomic outlook; (3) a highly capital intensive business model that restrains free cash flow driven by contract requirements and technology demands; (4) foreign currency exchange risk with about 50% of NEP's revenue generated from outside of the United States (5) moderate social and reputational risks; and (6) private equity ownership and an aggressive acquisition strategy which could lead to persistent elevated leverage levels. However, the company benefits from: (1) a strong global...

NEP/NCP Holdco, Inc: Update following incremental debt raise - Credit Opinion – 2020/06/15 – US$ 250.00 – ...NEP's credit profile reflects meaningful uncertainty regarding the company's earnings over the course of 2020 and 2021, as various sporting competitions and live event productions are considering reopening as social distancing requirements and the spread of coronavirus outbreak moderates. We anticipate that to the extent that sports and live events restart, NEP will be able to deliver its outsourced broadcasting services as contemplated under its contracts. However, we also expect that sporting and live events restart may be gradual and measured, with many events returning in modified format. In addition, the potential for recurrence of an outbreak may limit how quickly traditional live events restart and may also lead to some pauses in the competitive sports following a period of reopening. Though newly raised $125 million in incremental committed first lien term loans provide for improved liquidity for NEP, the incremental debt also increases leverage and interest expense during a period...