Recent media coverage has speculated on NEC's financial position and the investment made in NEC by funds managed by CVC ("CVC Funds"). Much of this coverage has been misleading and inaccurate.

For clarity:

  • NEC's senior debt matures in February 2013 and there is no current requirement to refinance this debt in advance of February 2013.  CVC has proactively commenced discussions with its lenders regarding refinancing options.
  • NEC is not in breach of any of its financial covenants or in default under any of its banking agreements.
  • NEC achieved $415mm of EBITDA in FY June 2011, up 16% on prior year and these accounts were signed off by its auditors on a going concern basis in October 2011.
CVC's investment in NEC
  • Recent media speculation significantly overstates the aggregate amount of the investment by CVC Funds in NEC.  The investment in NEC was made through four separate CVC Funds and the cost of this investment represents less than 5% of CVC’s current private equity funds under management.
  • The overall performance of the CVC Funds continues to be top quartile after fully reflecting the latest financial position of NEC.