NEP Group Inc. NEP Group, Inc. - Credit Ratings Update

 
TIDMAVS 
 
1 December 2016 
 
                                NEP GROUP, INC. 
 
                             CREDIT RATINGS UPDATE 
 
On 17 November 2016, NEP Group, Inc. ("NEP") and Avesco Group plc ("Avesco") 
announced that they had reached agreement on the terms of a recommended cash 
acquisition by which the entire issued share capital of Avesco will be acquired 
by NEP or a NEP Subsidiary (the "Acquisition").  The Acquisition will be 
effected by means of a Court-sanctioned scheme of arrangement under Part 26 of 
the Companies Act 2006 (the "Scheme").  Further to that announcement, on 23 
November 2016, Avesco published a circular to its shareholders in connection 
with the Scheme (the "Scheme Document"). 
 
NEP now advises that, following the posting of the Scheme Document, Moody's 
Investment Service ("Moody's") and Standard and Poor's Rating Services ("S&P") 
have updated their ratings of NEP and assigned new ratings to the proposed EUR 
270m first lien term loan to be issued by NEP Europe Finco B.V., a subsidiary 
of NEP (to be used in part to finance the Acquisition). 
 
S&P has reaffirmed NEP's B credit rating (previously B) and maintains a 
negative rating outlook.  In addition, a B+ issue-level rating and 2 recovery 
rating has been assigned to the proposed EUR270m first lien term loan facility. 
 
Moody's has reaffirmed NEP's B2 Corporate Family Credit rating (previously B2) 
and revises the rating outlook to negative from stable.  In addition, a B1 
rating has been assigned to the proposed EUR270m first lien term loan. 
 
The full reports are available to view on NEP's website at http:// 
www.nepinc.com/ 
 
Terms and expressions used in this announcement shall, unless the context 
otherwise requires, have the same meanings as given to them in the Scheme 
Document. 
 
Enquiries 
 
NEP                                             [phone] 
Kevin Rabbitt, Chief Executive Officer 
Gerry Delon, Chief Financial Officer 
 
 
Barclays Bank PLC, acting through its           [phone] 
Investment Bank (Financial Adviser to NEP) 
Scott Wisniewski 
James Colburn 
 
Further information 
 
This announcement is not intended to and does not constitute, or form part of, 
an offer, invitation or the solicitation of an offer to purchase, otherwise 
acquire, subscribe for, sell or otherwise dispose of any securities, or the 
solicitation of any vote or approval in any jurisdiction, pursuant to the 
Acquisition or otherwise, nor shall there be any sale, issuance or transfer of 
securities of Avesco in any jurisdiction in contravention of applicable law. 
The Scheme Document contains the full terms and conditions of the Acquisition 
including details of how to vote in respect of the Scheme. Any vote in respect 
of the Scheme or other response in relation to the Acquisition should be made 
only on the basis of the information contained in the Scheme Document. 
 
Barclays Bank PLC (acting through its Investment Bank) ("Barclays"), which is 
authorised by the Prudential Regulation Authority and regulated in the United 
Kingdom by the Financial Conduct Authority and the Prudential Regulation 
Authority, is acting exclusively for NEP and no one else in connection with the 
Acquisition and will not be responsible to anyone other than NEP for providing 
the protections afforded to clients of Barclays nor for providing advice in 
relation to the Acquisition or any other matter referred to in this 
announcement. 
 
Overseas jurisdictions 
 
The availability of the Acquisition to Avesco Shareholders who are not resident 
in and citizens of the UK may be affected by the laws of the relevant 
jurisdictions in which they are located or of which they are citizens. Persons 
who are not resident in the UK should inform themselves of, and observe, any 
applicable legal or regulatory requirements of their jurisdictions. Further 
details in relation to overseas shareholders will be contained in the Scheme 
Document. 
 
The release, publication or distribution of this announcement in or into 
jurisdictions other than the UK may be restricted by law and therefore any 
persons who are subject to the law of any jurisdiction other than the UK should 
inform themselves about, and observe, any applicable requirements. Any failure 
to comply with the applicable restrictions may constitute a violation of the 
securities laws of any such jurisdiction. To the fullest extent permitted by 
applicable law, the companies and persons involved in the Acquisition disclaim 
any responsibility or liability for the violation of such restrictions by any 
person. This announcement has been prepared for the purposes of complying with 
English law, the AIM Rules, the rules of the London Stock Exchange and the Code 
and the information disclosed may not be the same as that which would have been 
disclosed if this announcement had been prepared in accordance with the laws of 
jurisdictions outside of England. 
 
Copies of this announcement and the formal documentation relating to the Scheme 
and the Acquisition will not be, and must not be, mailed or otherwise 
forwarded, distributed or sent in, into or from any jurisdiction where to do so 
would violate the laws of that jurisdiction. 
 
US Holders should note that the Acquisition relates to the securities of a UK 
company, is subject to UK disclosure requirements (which are different from 
those of the US) and is proposed to be implemented under a scheme of 
arrangement provided for under English company law. A transaction effected by 
means of a scheme of arrangement is not subject to the tender offer rules under 
the US Exchange Act. Accordingly, the Scheme will be subject to UK disclosure 
requirements and practices, which are different from the disclosure 
requirements of the US tender offer and proxy solicitation rules. The financial 
information included in this announcement and the Scheme documentation has been 
or will have been prepared in accordance with IFRS and thus may not be 
comparable to financial information of US companies or companies whose 
financial statements are prepared in accordance with generally accepted 
accounting principles in the US. If NEP exercises its right to implement the 
Acquisition of the Avesco Shares by way of a takeover offer, such offer will be 
made in compliance with applicable US tender offer and securities laws and 
regulations. 
 
The receipt of cash pursuant to the Acquisition by a US Holder as consideration 
for the transfer of its Scheme Shares pursuant to the Scheme may be a taxable 
transaction for US federal income tax purposes and under applicable US state 
and local, as well as foreign and other, tax laws. Each Avesco Shareholder is 
urged to consult his independent professional adviser immediately regarding the 
tax consequences of the Acquisition applicable to him. 
 
It may be difficult for US Holders to enforce their rights and claims arising 
out of the US federal securities laws, since Avesco is located outside the US, 
and some or all of its officers and directors may be residents of countries 
other than the US. US Holders may not be able to sue a non-US company or its 
officers or directors in a non-US court for violations of US securities laws. 
Further, it may be difficult to compel a non-US company and its affiliates to 
subject themselves to a US court's judgement. 
 
In accordance with the Code, normal United Kingdom market practice and Rule 
14e-5(b) of the US Exchange Act, NEP or its nominees or its brokers (acting as 
agents) may from time to time make certain purchases of, or arrangements to 
purchase, Avesco Shares outside of the United States, other than pursuant to 
the Acquisition, until the date on which the Acquisition and/or Scheme becomes 
effective, lapses or is otherwise withdrawn. In addition, in accordance with 
the Code, normal United Kingdom market practice and Rule 14e-5(b) of the US 
Exchange Act, Barclays and its affiliates will continue to act as exempt 
principal trader in Avesco securities on the London Stock Exchange. These 
purchases and activities by exempt principal traders which are required to be 
made public in the United Kingdom pursuant to the Code will be reported to a 
Regulatory Information Service and will be available on the London Stock 
Exchange website at www.londonstockexchange.com. This information will also be 
publicly disclosed in the United States to the extent that such information is 
made public in the United Kingdom. 
 
Dealing disclosure requirements 
 
Under Rule 8.3(a) of the Code, any person who is interested in 1% or more of 
any class of relevant securities of an offeree company or of any securities 
exchange offeror (being any offeror other than an offeror in respect of which 
it has been announced that its offer is, or is likely to be, solely in cash) 
must make an Opening Position Disclosure following the commencement of the 
offer period and, if later, following the announcement in which any securities 
exchange offeror is first identified. 
 
An Opening Position Disclosure must contain details of the person's interests 
and short positions in, and rights to subscribe for, any relevant securities of 
each of (i) the offeree company and (ii) any securities exchange offeror(s). An 
Opening Position Disclosure by a person to whom Rule 8.3(a) applies must be 
made by no later than 3.30 pm (London time) on the 10th Business Day following 
the commencement of the offer period and, if appropriate, by no later than 3.30 
pm (London time) on the 10th Business Day following the announcement in which 
any securities exchange offeror is first identified. Relevant persons who deal 
in the relevant securities of the offeree company or of a securities exchange 
offeror prior to the deadline for making an Opening Position Disclosure must 
instead make a Dealing Disclosure. 
 
Under Rule 8.3(b) of the Code, any person who is, or becomes, interested in 1% 
or more of any class of relevant securities of the offeree company or of any 
securities exchange offeror must make a Dealing Disclosure if the person deals 

in any relevant securities of the offeree company or of any securities exchange 
offeror. A Dealing Disclosure must contain details of the dealing concerned and 
of the person's interests and short positions in, and rights to subscribe for, 
any relevant securities of each of (i) the offeree company and (ii) any 
securities exchange offeror(s), save to the extent that these details have 
previously been disclosed under Rule 8. A Dealing Disclosure by a person to 
whom Rule 8.3(b) applies must be made by no later than 3.30 pm (London time) on 
the Business Day following the date of the relevant dealing. 
 
If two or more persons act together pursuant to an agreement or understanding, 
whether formal or informal, to acquire or control an interest in relevant 
securities of an offeree company or a securities exchange offeror, they will be 
deemed to be a single person for the purpose of Rule 8.3. 
 
Opening Position Disclosures must also be made by the offeree company and by 
any offeror and Dealing Disclosures must also be made by the offeree company, 
by any offeror and by any persons acting in concert with any of them (see Rules 
8.1, 8.2 and 8.4). 
 
Details of the offeree and offeror companies in respect of whose relevant 
securities Opening Position Disclosures and Dealing Disclosures must be made 
can be found in the Disclosure Table on the Takeover Panel's website at 
www.thetakeoverpanel.org.uk, including details of the number of relevant 
securities in issue, when the offer period commenced and when any offeror was 
first identified. You should contact the Panel's Market Surveillance Unit on 
[phone] if you are in any doubt as to whether you are required to 
make an Opening Position Disclosure or a Dealing Disclosure. 
 
Publication on website 
 
A copy of this announcement will be made available, subject to certain 
restrictions relating to persons resident in Restricted Jurisdictions, on NEP's 
website at http://www.nepinc.com and Avesco's website at http://www.avesco.com 
by no later than 12 noon (London time) on the Business Day following this 
announcement. For the avoidance of doubt, the contents of these websites are 
not incorporated by reference and do not form part of this announcement. 
 
Requesting hard copy documents 
 
In accordance with Rule 30.3 of the Code, a person so entitled may request a 
hard copy of this announcement by contacting the Communications Director of NEP 
during business hours on [phone] or by submitting a request in writing 
to the Communications Director of NEP at [e-mail]. For persons who 
receive a copy of this announcement in electronic form or via a website 
notification, a hard copy of this announcement will not be sent unless so 
requested. You may also request that all future documents, announcements and 
information to be sent to you in relation to the Acquisition should be in hard 
copy form. 
 
 
 
END 
 

(END) Dow Jones Newswires

December 01, 2016 10:29 ET (15:29 GMT)