In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages. The CFO will also update the Board, where required, on material tax matters. You can change your cookie settings at any time. The market valuation is utilized generally as a primary market input, to provide an objective starting point for the valuation. NCE--Noncommon equity. We expect this will have a significant impact on Nord Anglia's cash interest expense, which we expect to increase by about 50% up to approximately $300 million (including lease interest expense), from about $200 million. Further acquisitions are likely in the near future, Nord Anglias CEO, Andrew Fitzmaurice, indicated at the time:Nord Anglia Education continues to have an active pipeline of excellent acquisition opportunities to further expand our global network., Nord Anglia Education continues to have an active pipeline of excellent acquisition opportunities. Endeavor Group Holdings, Inc. (NYSE: EDR), a global sports and entertainment company, today announced it has entered into a definitive agreement to sell its subsidiary IMG Academy, a leading global sports education institution, to BPEA EQT, part of the leading global private equity group, EQT, in partnership with Nord Anglia Education. Please note that this briefing is intended to provide a very general overview of the matters to which it relates. Leveraged Finance Q2 2023 Update: Disparities Emerge By Sector, Rating, Company Size, And Debt Cushion, FAQ: Applying Our Integrated Analytical Approach For Use-Of-Proceeds Second Party Opinions, Analytical Approach: Shades Of Green Assessments, Analytical Approach: Second Party Opinions: Use Of Proceeds. Wehave high conviction that Nord Anglias future is even more promising than its past. Founded in 1972, Nord Anglia teaches some 37,000 students at43 schools in China, Europe, the Middle East, North America and Southeast Asia. However, our bankruptcy scenario assumes that the group will be restructured as a going concern. The current macroeconomic conditions have led to increasing base rates following central banks' actions, and to increasing margins for refinancing existing debt. 18 July 2019), eHi Car Services Limited (unreported judgment dated 22 June 2021, Parker J) and In the Matter of 58.com, Inc FSD 275 of 2020, [11] In the matter of Qunar Islands Limited [2018 (1) CILR 199], see para. Nord Anglia Education Overview Update this profile Founded 1972 Status Private Employees 4,630 Latest Deal Type Debt Financing Rounds 9 Investments 27 General Information Description Operator of educational institutes intended to offer K-12 schools globally. Nord Anglia is seeking to extend its 2024 and 2025 maturities by three years up to 2027 and 2028, respectively. The market valuation is utilized generally as a primary market input, to provide an objective starting point for the valuation. We anticipate top-line growth and improved profitability metrics over the next 12-24 months, though we expect a small drop in EBITDA margin in 2023 before recovering in 2024. Alternatively, call one of the following S&P Global Ratings numbers: Client Support Europe (44) 20-7176-7176; London Press Office (44) 20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; or Stockholm (46) 8-440-5914. The group also announced its expansion into Ireland in the same month, with an 800-seat school inDublin set to open in September next year. Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. We are delighted to announce the development of our first school in Ireland, said Fitzmaurice. Welcome to the Cumbria and North East Medical Appraisal and Revalidation website. 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(Nord Anglia Education), FOCF after lease payments/debt (excl. This, together with the overall fee increase during the year, has led to a revenue per student growth of about 8%, supported by 11% growth in the Americas (where revenue per full-time equivalent [FTE] had been decreasing since 2018) and 14.6% growth in Europe. Although unlikely at this stage given its financial leverage, we could raise our ratings on Nord Anglia if its performance materially exceeded our base case, especially if the group were able to reduce adjusted debt to EBITDA to below 5.0x, excluding shareholder instruments, and if we saw a sustainable improvement in cash flow generation leading to FOCF after leases to debt (excluding preference shares) above 5%. Capacity increased only marginally during the year by 4% up to a 93,610 average for the period (excluding the China Bilingual business), with strong growth in Americas and China International, as the group continued to invest in these regions. /ratings/en/research/articles/230113-research-update-nord-anglia-education-bach-finance-ltd-upgraded-to-b-on-improved-performance-outlook-st-12610952 At our day and boarding schools, we go beyond traditional learning to deliver a high quality, transformational education to thousands of students from kindergarten through to the end of secondary school. our schools Asia Americas Europe Middle East All Asia The Americas Europe The Middle East Day Cambodia, Phnom Penh Northbridge International School Cambodia Ages 2-18 from $5,460 pa Boarding China, Beijing The question went before the Privy Council, which determined that there is no 'bright line' an application, or exclusion, of a minority discount as a rule. However, the group generates less than 5% of its EBITDA (that is, less than $30 million) in that currency, which could leave it exposed to foreign exchange risk in the absence of a hedging strategy. In this particular case, the Court adopted a "blended" valuation approach in appraising the "fair value", by applying a different weightage to the merger price, the unaffected trading price and the more conventional discounted cashflow valuation. A rapid deterioration in earnings could also be caused by an escalation in global geopolitical conflicts, causing Nord Anglia's foreign national student base to move to another country. The education sector is intrinsically exposed to changes in regulation, and Nord Anglia has been highly affected by the Chinese government's decision to ban direct foreign ownership of private schools that impart mandatory education for Chinese nationals. The acquisition valued Nord Anglia's enterprise value at about $4.3 billion. The Nord Anglia Education (NAE) group is the worlds leading premium international schools organisation. We expect this to have a significant impact on the group's cash flow and interest coverage. The Group Head of Tax has responsibility for the tax function and is accountable to the Chief Financial Officer. Nord Anglia has significant amounts of cash in several currencies and full availability under the RCF, which it can draw in euros to cover interest payments if needed. Year 6 visits Microsoft HQ Tech Hub. Mobility and travel restrictions in China have also affected the group's ability to increase utilization rates, and we expect this will continue over the coming 12-24 months, as fewer foreign nationals settle in the country. We forecast Nord Anglia's total leases to grow broadly in line with its investment in school openings and expanding the capacity of existing facilities. Ch. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal, or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof. P/E relates the current share price with the market expectations in terms of Earnings Per Share. In Sina Corporation[8], the company was faced with a different type of difficulty in complying with its disclosure obligations. We do not assume any dividend distribution to the shareholders. We expect revenue to increase by 8%-10% over the next two years, mostly driven by increasing utilization toward 72%-74% and rising fees across all geographies--though a weak euro versus dollar could hinder Europe's reported performance. work for us Working for Nord anglia. A description of each of S&P Global Ratings' rating categories is contained in "S&P Global Ratings Definitions" at https://www.standardandpoors.com/en_US/web/guest/article/-/view/sourceId/504352 Complete ratings information is available to subscribers of RatingsDirect at www.capitaliq.com. Next accounts made up to 31 August 2022 Nord Anglia Education Stock Price, Funding, Valuation, Revenue & Financial Statements Nord Anglia reported good revenue and EBITDA growth in 2022, largely supported by an increase in revenue per student, while utilization rates remain below pre-pandemic levels. This includes claiming all available tax reliefs with due regard to our obligation to protecting shareholder value. [11]. Services are provided on the basis of our current terms of business. Capex of $100 million-$120 million, comprising maintenance projects of $70 million-$80 million and about $30 million-$40 million of growth capex. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses. 63. While the group has made significant acquisitions in the past, leading to a total cash outflow of $262 million in 2022, we do not factor any transformational acquisitions into our base case. [2] The head office is in Nova South, 160 Victoria Street, London. Our international boarding schools offer your child an unforgettable educational experience. This briefing sets out five practical points highlighted in recent decisions of the Cayman Islands Courts. due by We offer multiple internationally recognised curricula, including the English National Curriculum, the International Baccalaureate, the Swiss Maturit, and the American Curriculum. Factsheet Company Data Comparable Analysis Market multiple valuation of Nord Anglia Education Inc. ( NORD | CYM) The most common multiple used in the valuation of stocks is the N/A multiple (Price to Earnings). We anticipate that the increasing interest rate environment will weigh on Nord Anglia's cash flow generation. If you wish to unsubscribe from our database, click here. Hong-Kong based international schools operator Nord Anglia Education is set to be taken private again in a $4.3bn deal with Canada Pension Plan Investment Board and Baring Private Equity Asia. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. However, we expect growth-capital investment to remain relatively modest, at about $30 million-$40 million per year, to respond to capacity-increase needs. *All figures adjusted by S&P Global Ratings. When faced with complaints that the standard form directions are duplicative, unfair and disproportionately costly to the company, the Court held that such directions are useful and the best "starting point", as long as they are not shown to work injustice in the particular case. We expect leverage metrics will remain below historic levels, with adjusted debt to EBITDA at about 9.0x (or about 7.0x, excluding debt-like noncommon equity instruments) over the next 12 months, supported by positive free operating cash flow (FOCF) after lease payments, albeit constrained by higher cash interest payments. The group's limited cash generation in relation to its balance sheet is reflected in a weak FOCF after leases to debt (excluding preference shares), below 1% in 2023 and only marginally increasing toward 2%-3% in 2024. At this early stage of the proceedings the Court was not minded to express a view as to whether the undoubted centrality of company discovery in section 238 proceedings and the Court's ability to determine fair value outweighed the concerns expressed by the company as to compliance with PRC law. Since it last sold in November 2016 for 1,250,000, its value has increased by 262,000. That said, we expect the group to hold solid cash balances in the foreseeable future. As of Aug. 31, 2022, the group had more than 69,000 full-time students and total capacity of 112,000 seats (including the deconsolidated China Bilingual segment). Carey Olsen 2023, Sign-up here to receive our news and briefings. The average Nord Anglia Education salary ranges from approximately $45,617 per year for a Learning Assistant to $56,136 per year for a Teacher. News; Year 6 visits Microsoft HQ Tech Hub; The visit to Microsoft Headquarters Tech Hub by 40 of our Year 6 students was a resounding success on 1 st June! Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. We expect the group to be able to pass on fee increases to cover the inflationary pressures and we assume a compound annual growth rate (CAGR) increase in revenue per student of about 1.5%-2% between 2022 and 2025, driven by an increase in fees across all regions but affected by foreign exchange movements. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. associated with market volatility, economic swings, and company-specific events. The use of the title Partner is merely to denote seniority. Key Facts 81 Schools 32 Countries 70,000 Students worldwide CREATE YOUR FUTURE Get ready for a world-class education at our premium international schools in the Americas, Europe, Asia, and the Middle East. articles Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the Nord Anglia Education has on its . Consequently, we raised our long-term issuer credit rating on Nord Anglia Education to 'B' from 'B-'. Travel restrictions and subsequent lockdowns for health and safety reasons impacted the company's performance during the pandemic, with revenue growth lagging behind capacity increase. Lexis 125 as [34], [3] In the Matter of Trina Solar Limited FSD 92 of 2017 (NSJ), [4] Re Nord Anglia FSD No 235 of 2017 (IKJ), Judgment dated 17 March 2020 (Kawaley J) (unreported), [5]In the Matter of Sina Corporation FSD 0128 of 2021 (25 January 2022) ("Sina Corporation"), [6] In the matter of eHi Car Services Limited (unreported judgment dated 22 June 2021, Parker J) ("eHi Car") at paras. Carey Olsen in the Cayman Islands is the business name of Carey Olsen Cayman Limited, a body corporate recognised under the Legal Practitioners (Incorporated Practice) Regulations (as revised). Thecompany is currently in the process of expanding its international portfolio of schools. Jurisprudence in relation to section 238 cases has developed rapidly since In the Matter of Integra Group [2016] (1) CILR 192, the first section 238 case which reached trial in late 2015. Offering the best in international and bilingual education in breathtaking scenery, your childs boarding school experience starts their journey to becoming a confident and resilient global citizen ready to make their mark on the world. A successful extension of the maturity date will reduce the refinancing risk in a volatile market and, together with the upsizing of the RCF, improves the group's liquidity profile, which we continue to view as adequate. Meta's Threads Has 70 Million Signups, Surprising Zuckerberg . Their stock opened with $16.00 in its Mar 26, 2014 IPO. At our schools, the fun doesnt stop over the summer. This is because, in a merger, the offeror does not acquire control from any individual minority shareholder.
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