Research Update: NEP/NCP Holdco Inc. Ratings Affirmed On Improved Liquidity, Outlook Negative; Term Loan Rated 'B' (Recovery Rating: '2')

Live and broadcast production solutions provider NEP/NCP Holdco Inc. (NEP) obtained an amendment to its revolving credit facility to waive its covenants until at least Dec. 31, 2021. In June 2020, the company also issued $125 million of debt due 2025, comprising a $100 million term loan and a $25 million delayed draw term loan, which provided additional liquidity during the COVID-19 shutdown. The recent liquidity injection and the covenant amendment alleviate NEP's near-term liquidity concerns as it navigates through the COVID-19 pandemic and the resulting global impact on live events--a core business segment of the company. We are assigning a 'B' issue-level and a '2' recovery rating to the $125 million term loan due 2025. The '2' recovery rating

...- Live and broadcast production solutions provider NEP/NCP Holdco Inc. (NEP) obtained an amendment to its revolving credit facility to waive its covenants until at least Dec. 31, 2021. In June 2020, the company also issued $125 million of debt due 2025, comprising a $100 million term loan and a $25 million delayed draw term loan, which provided additional liquidity during the COVID-19 shutdown. - The recent liquidity injection and the covenant amendment alleviate NEP's near-term liquidity concerns as it navigates through the COVID-19 pandemic and the resulting global impact on live events--a core business segment of the company. - We are assigning a 'B' issue-level and a '2' recovery rating to the $125 million term loan due 2025. The '2' recovery rating indicates substantial (70%-90%; rounded estimate: 70%) recovery in a payment default scenario. - We are affirming our 'B-' issuer credit rating on NEP and removing all of our ratings on the company from CreditWatch, where we placed them...

Research Update