Accor Announces Additional €560m Banking Credit Facility
Accor has more than €4bn of cash available and sees initial signs of business recovery
Accor announces today that it has signed an agreement with a consortium of 5 banks for a new €560m Revolving Credit Facility (RCF). It complements the undrawn €1.2bn RCF signed in July 2018. It further reinforces Accor's liquidity position which today exceeds €4.0bn, i.e. more than 40 months under the current market conditions:
- €2.5bn available cash at-hand as of end-March 2020
- €1.2bn RCF signed in July 2018 - undrawn
- €0.56bn as per the new RCF - undrawn
The new fully committed facility has a 12 months tenor, with two six-months extension options in the hands of Accor and has neither covenant nor restriction. It has been underwritten by the following 5 banks: BNP Paribas, Crédit Agricole CIB, Crédit Industriel et Commercial, Natixis and Société Générale. This reflects the renewed trust of Accor's core banks its business profile and strong balance sheet.
As a reminder, Accor is implementing the cash preservation plan already announced, namely:
- the suspension of share buyback programs;
- the withdrawal of the dividend in respect of 2019;
- the cost-saving measures implemented in end-March;
- the reduction of recurring investments;
- the suspension of external growth transactions.
In this context, while operations are still challenging, the Group sees initial signs of business improvement. In France, the lockdown relaxation and the measures announced by the government to support tourism in the country are favourable elements. RevPAR shows some recovery in China while the number of opened hotels in the world increases every day, in Asia and in Europe, notably in Germany. Accor has re-opened 250 hotels since end-April. To date, 42% of the Accor network is operating.
Accor is a world leading hospitality group consisting of more than 5,000 properties and 10,000 food and beverage venues throughout 110 countries. The group has one of the industry's most diverse and fully-integrated hospitality ecosystems encompassing luxury and premium brands, midscale and economy offerings, unique lifestyle concepts, entertainment and nightlife venues, restaurants and bars, branded private residences, shared accommodation properties, concierge services, co-working spaces and more. Accor also boasts an unrivalled portfolio of distinctive brands and approximately 300,000 team members worldwide. Over 65 million members benefit from the company's comprehensive loyalty program ALL - Accor Live Limitless - a daily lifestyle companion that provides access to a wide variety of rewards, services and experiences. Through its Planet 21 - Acting Here, Accor Solidarity, RiiSE and ALL Heartist Fund initiatives, the group is focused on driving positive action through business ethics, responsible tourism, environmental sustainability, community engagement, diversity and inclusivity. Founded in 1967, Accor SA is headquartered in France and publicly listed on the Euronext Paris Stock Exchange (ISIN code: FR0000120404) and on the OTC Market (Ticker: ACRFY) in the United States. For more information visit group.accor.com or follow Accor on Twitter, Facebook, LinkedIn and Instagram.