AccorInvest Group
AccorInvest Working With Hogan Lovells as Legal Advisor for Debt Talks, Lenders Hire Houlihan Lokey, Freshfields to Assist
Tue 10/13/2020 13:28 PM
Relevant Documents:
AccorInvest Group Results
AccorInvest (Non-Consolidated) 2019 Report
Hotel investor, owner and operator AccorInvest is working with Hogan Lovells as a legal advisor alongside Rothschild, sources told Reorg. Lenders are advised by Houlihan Lokey and Freshfields for upcoming debt restructuring negotiations.
The company started mandat ad hoc proceedings to evaluate options, including the raising of new capital as reported. Mandat ad hoc is an amicable solution found in the French insolvency regime, which allows a company and its stakeholders to agree to a deal before seeking to implement it. It is an informal process and can continue indefinitely, although it can only be used to reach consensual deals. The group would need to use another tool, such as a Sauvegarde Financière Accélérée, or SFA, to implement a coercive deal. Continue reading for the EMEA Core Credit team's coverage of AccorInvest's upcoming debt restructuring negotiations, and request a trial to access reporting and analysis on hundreds of other credits.
Accor’s shareholder told Reorg in an emailed statement on Oct. 7 that AccorInvest is working on adding incremental liquidity. The company is seeking a €450 million French state-backed loan, according to news reports, after it had decided not to pursue it in August, according to Reuters.
As per the 2019 annual report, AccorInvest had €2.9 billion of bank debt, of which €931 million of bank borrowings is due in 2021 and €2 billion due in 2023. Availability under the €3.6 billion credit facility was €677 million. Net debt before adjustments was €5.4 billion, including €2.6 billion of lease liabilities.
The acquisition of Accor’s 86% stake in the Polish hotel group Orbis, post year-end but pre-Covid-19, for €1.06 billion is likely to have increased the group’s debt.
The €3.6 billion facility was signed with about 20 international banks in May 2018 and was structured as follows:
The bank repayment schedule as of Dec. 31 2019 was as follows:
--Aurelia Seidlhofer
AccorInvest Group Results
AccorInvest (Non-Consolidated) 2019 Report
Hotel investor, owner and operator AccorInvest is working with Hogan Lovells as a legal advisor alongside Rothschild, sources told Reorg. Lenders are advised by Houlihan Lokey and Freshfields for upcoming debt restructuring negotiations.
The company started mandat ad hoc proceedings to evaluate options, including the raising of new capital as reported. Mandat ad hoc is an amicable solution found in the French insolvency regime, which allows a company and its stakeholders to agree to a deal before seeking to implement it. It is an informal process and can continue indefinitely, although it can only be used to reach consensual deals. The group would need to use another tool, such as a Sauvegarde Financière Accélérée, or SFA, to implement a coercive deal. Continue reading for the EMEA Core Credit team's coverage of AccorInvest's upcoming debt restructuring negotiations, and request a trial to access reporting and analysis on hundreds of other credits.
Accor’s shareholder told Reorg in an emailed statement on Oct. 7 that AccorInvest is working on adding incremental liquidity. The company is seeking a €450 million French state-backed loan, according to news reports, after it had decided not to pursue it in August, according to Reuters.
As per the 2019 annual report, AccorInvest had €2.9 billion of bank debt, of which €931 million of bank borrowings is due in 2021 and €2 billion due in 2023. Availability under the €3.6 billion credit facility was €677 million. Net debt before adjustments was €5.4 billion, including €2.6 billion of lease liabilities.
The acquisition of Accor’s 86% stake in the Polish hotel group Orbis, post year-end but pre-Covid-19, for €1.06 billion is likely to have increased the group’s debt.
The €3.6 billion facility was signed with about 20 international banks in May 2018 and was structured as follows:
- €2 billion term loan with interest of 2.3% due Jan. 31 2023;
- €1.35 billion capex facility with interest of 2%, due Jan. 31, 2021; and
- €250 million RCF with interest of 1.7% due Jan. 31, 2023.
The bank repayment schedule as of Dec. 31 2019 was as follows:
--Aurelia Seidlhofer
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