IHG Amends Revolving Credit Facilities

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.

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