ACCOR HAS MORE THAN €4BN OF CASH AVAILABLE
THE GROUP 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 lock-down relaxation and the measures announced by the government to support tourism in the country are favorable 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.
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