Financing

NH extends credit

NH Hotel Group has agreed the extension of its €236m SRCF from September 2021 until March 2023 with all the lenders.

The company said that, as a result, it did not face any significant debt maturity until 2023.

NH Hotel Group's lenders have also agreed to extend the covenant waiver until June 2021.

For the purpose of alignment with the €250m 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.

NH said: “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.”