News / NH Hotel Group extends maturity on 236 million credit until March 2023

NH Hotel Group extends maturity on 236 million credit until March 2023

🕔 October 29, 2020
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NH Hotel Group has agreed the extension of its €236 million Syndicated Revolving Credit Facility from September 2021 until March 2023 with all the lenders. By agreeing to this extension, its Spanish and other European banks have reaffirmed their support for the company, which does not face any significant debt maturity until 2023. The agreement comes after a €14 million reduction in the amount drawn down (original amount: €250 million), due to the withdrawal from the agreement of three lenders with non-material tickets.

In relation to the waiver obtained in June 2020 from compliance with the financial covenants stipulated in this facility with respect to June and December 2020, NH Hotel Group's lenders have unanimously agreed to extend the covenant waiver until June 2021.

For the purpose of alignment with the €250 million syndicated loan arranged in May, due in September 2023 and with a state guarantee from Spain's official credit institute, the ICO, the lenders in this state guarantee syndicate loan have similarly granted a covenant waiver until June 2021.

The Company's senior secured notes due 2023 do not have financial covenant tests.

Furthermore, in recent years, NH's commitment to sustainable development and its evolution, coupled with its participation in the 2019 Corporate Sustainability Assessment (CSA) by the sustainable investing specialist SAM, paved the way for getting the newly extended €236 million revolving credit facility certified as sustainable financing. That certification, which is monitored and measured annually by an independent consultant on the basis of an ESG score, could unlock differences in the borrowing cost of +/- 5 basis points.

The depth and uncertainty about the duration and economic consequences of the health crisis induced by Covid-19 requires NH to keep its cost base reduced, a downsized workforce by means of furloughs, shorter working hours and wage cuts, while the Company continues to renegotiate its leases with landlords with the aim of agreeing rent-free periods or discounts.

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