LONDON—InterContinental Hotels Group (IHG) has reached agreement for further amendments to its revolving credit facilities (RCF). This includes an additional waiver of the covenants on Dec. 31, 2021, together with a relaxation to the covenants on June 30, 2022 and Dec. 31, 2022. The leverage ratio covenant has been amended to require net debt to EBITDA of less than 7.5:1 on June 30, 2022 and less than 6.5:1 on Dec. 31, 2022. The interest cover covenant has been amended to require a ratio of above 1.5:1 on June 30, 2022 and above 2.0:1 on Dec. 31, 2022. The covenant relaxations have been based on a theoretical severe downside scenario. The minimum liquidity covenant of $400 million will continue while the amendments are in place and will be tested on Dec. 31, 2021; June 30, 2022; and Dec. 31, 2022.
This follows the announcement in April of IHG amending its existing $1.35 billion syndicated and bilateral RCF to include a waiver of existing covenants on June 30, 2020; Dec. 31, 2020; and June 30, 2021. The interest cover and leverage ratio covenants were replaced by a $400 million minimum liquidity covenant. The maturity of the RCF was extended by 18 months to September 2023.
