SECURITIES
AND EXCHANGE COMMISSION
Washington
DC 20549
FORM 6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 AND 15d-16
OF
THE
SECURITIES EXCHANGE ACT OF 1934
For 27
April 2020
InterContinental Hotels Group PLC
(Registrant's
name)
Broadwater
Park, Denham, Buckinghamshire, UB9 5HJ, United Kingdom
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form
20-F
Form 40-F
Indicate
by check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.
Yes
No
If
"Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): Not
applicable
EXHIBIT
INDEX
99.1
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Financing
and current trading update dated 27 April 2020
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Exhibit
No: 99.1
This announcement contains inside
information
27 April 2020
InterContinental Hotels Group PLC
Financing and current trading update
InterContinental Hotels Group ("IHG") [LON:IHG, NYSE:IHG (ADRs)]
provides a financing update including a waiver of existing banking
covenants and provision of additional facilities through the UK
Covid Corporate Financing Facility (CCFF), alongside an update to
current trading.
Financing update
IHG has secured new financing arrangements to further strengthen
its liquidity position.
This includes amending its syndicated revolving credit facility to
include a waiver of existing covenants until 31 December
2021. The amendment introduces a minimum liquidity covenant
of $400m, tested at half year and full year, up to and including 30
June 2021 (see note 1 below for further details).
The
Bank of England has also now confirmed IHG as an eligible issuer
for the UK Government's CCFF, and IHG has issued £600m
(~$740m) in commercial paper under this facility.
IHG now
has access to $1.35bn of cash on deposit and existing bank
facilities are currently $660m undrawn, taking total available
liquidity to ~$2bn.
Current trading
When we announce our First Quarter 2020 trading update on 7 May, we
expect to report that Q1 Global RevPAR decreased approximately 25%,
including a 55% decline in March, in line with the Business Update
we provided on 20 March. Trading in Greater China continues
to steadily improve, with only 12 out of 470 hotels now
closed. In the US, ~10% of our hotels are currently closed,
demonstrating the resilience of our mainstream, franchised
business, and, in EMEAA, ~50% of hotels are currently closed.
Occupancy levels in comparable open hotels are currently in
the low to mid 20% range across the business.
We will provide a fuller update on 7 May with our First Quarter
2020 trading update.
-Ends-
For further information, please contact:
Investor Relations (Stuart Ford; Matt Kay; Rakesh
Patel)
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+44 (0)1895 512 176
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+44 (0)7527 419 431
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Media Relations (Yasmin Diamond; Mark Debenham)
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+44 (0)1895 512 097
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+44 (0)7527 424 046
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For the purposes of the Market Abuse Regulation, the person
responsible for arranging the release of this announcement is
Nicolette Henfrey, EVP, General Counsel & Company
Secretary.
Note 1: The syndicated
revolving credit facility has customary covenants in respect of
interest cover and leverage ratio, tested at half year and full
year on a trailing twelve-month basis. The next three tests
of these covenants are now waived, with the next test occurring on
31 December 2021. The interest cover covenant requires a ratio of
EBITDA to net interest payable above 3.5:1 and the leverage ratio
requires Net Debt:EBITDA of below 3.5:1 on a "frozen GAAP" basis
pre-IFRS 16. For 2019, the IFRS 16 adjustment reduced EBITDA
and net debt by approximately $70m and $440m respectively.
The interest cover and leverage ratio covenants have been replaced
by a minimum liquidity covenant (defined as unrestricted cash and
undrawn facilities with a remaining term of 6 months) which will be
tested at 30 June 2020, 31 December 2020 and 30 June
2021.
Note on forward-looking statements
This document may contain projections and forward-looking
statements. The words "believe", "expect", "anticipate",
"intend" and "plan" and similar expressions identify
forward-looking statements. All statements other than
statements of historical facts included in this document,
including, without limitation, those regarding the Company's
financial position, potential business strategy, potential plans
and potential objectives, are forward-looking statements.
Such forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the
Company's actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Such forward-looking statements are based on
numerous assumptions regarding the Company's present and future
business strategies and the environment in which the Company will
operate in the future. Further, certain forward-looking
statements are based upon assumptions of future events which may
not prove to be accurate. The forward-looking statements in
this document speak only as at the date of its publication and the
Company assumes no obligation to update or provide any additional
information in relation to such forward-looking
statements.
The merits or suitability of investing in any securities previously
issued or issued in future by the Company for any investor's
particular situation should be independently determined by such
investor. Any such determination should involve, inter alia,
an assessment of the legal, tax, accounting, regulatory, financial,
credit and other related aspects of the transaction in
question.
Note to Editors
IHG® (InterContinental Hotels Group) [LON:IHG, NYSE:IHG (ADRs)] is a global
organisation with a broad portfolio of hotel brands,
including Six
Senses Hotels Resorts Spas, Regent
Hotels & Resorts, InterContinental® Hotels
& Resorts, Kimpton® Hotels
& Restaurants, Hotel
Indigo®, EVEN® Hotels, HUALUXE® Hotels
and Resorts, Crowne
Plaza® Hotels
& Resorts, voco™, Holiday
Inn® Hotels
& Resorts , Holiday
Inn Express®, Holiday
Inn Club Vacations®, avid™
hotels, Staybridge
Suites®, Atwell
Suites™,
and Candlewood
Suites®.
IHG franchises, leases, manages or owns more than 5,900 hotels and
approximately 884,000 guest rooms in more than 100 countries, with
over 1,900 hotels in its development pipeline. IHG also
manages IHG® Rewards
Club, our global loyalty
programme, which has more than 100 million enrolled
members.
InterContinental Hotels Group PLC is the Group's holding company and is
incorporated in Great Britain and registered in England and
Wales. More than 400,000 people work across IHG's hotels
and corporate offices globally.
Visit www.ihg.com for
hotel information and reservations and www.ihgrewardsclub.com for
more on IHG Rewards Club. For our latest news,
visit: https://www.ihgplc.com/media and
follow us on social media at: https://twitter.com/ihgcorporate, www.facebook.com/ihgcorporate and www.linkedin.com/company/intercontinental-hotels-group.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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InterContinental Hotels Group PLC
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(Registrant)
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By:
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/s/ F.
Cuttell
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Name:
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F.
CUTTELL
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Title:
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ASSISTANT
COMPANY SECRETARY
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Date:
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27 April 2020
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