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 augmented hospitality group offering unique and meaningful experiences in 5.000 hotels, resorts, and residences across more than 110 destinations. With an unrivalled portfolio of brands from luxury to economy, Accor has been providing hospitality savoir-faire for more than 50 years.
Beyond accommodations, Accor enables new ways to live, work, and play with Food & Beverage, nightlife, wellbeing, and co-working brands. To drive business performance, Accor's portfolio of business accelerators amplifies hospitality distribution, operations, and experiences. Guests have access to one of the world's most attractive hotel loyalty programs.
Accor is deeply committed to sustainable value creation, and plays an active role in giving back to planet and community. Planet 21 - Acting Here endeavors to act for "positive hospitality", while Accor Solidarity, the endowment fund, empowers disadvantaged people through professional training and access to employment.
Accor SA is publicly listed on the Euronext Paris Stock Exchange (ISIN code: FR0000120404) and on the OTC Market (Ticker: ACRFY). For more information visit accor.com. or become a fan and follow us on Twitter and Facebook.