This section illustrates the Group’s solid finances, in particular with information on our debt structure and financing strategy.
On December 31, 2014, AccorHotels unused long term committed lines are amounting to €1,800 million, expiring in June 2019.
At December 31, 2014, 98% of long and short-term debt was fixed rate, with an average rate of 3.01%, and 2% was variable rate, with an average rate of 7.26%.
At December 31, 2014, fixed rate debt was denominated primarily in EUR (89%), while variable rate debt was denominated mainly in COP (24%), MUR (21%) and EUR (8%).
At December 31, 2014 long and short-term financial debt by maturity was as follow:• Due within one year: 3%
• Due in 1-2 years: 1%
• Due in 3-6 years: 56%
• Due beyond 6 years: 40%
An internationally-recognized signature allows AccorHotels to raise various forms of financing either through banks or through the issue of billets de trésorerie (commercial paper) in France and bonds in both French and international markets.
Generally, the Group’s policy is to finance its assets and operating requirements in the currency of the country concerned, in order to create a natural hedge and avoid any currency risk.
From time to time, the Group also takes advantage of market opportunities by raising financing in a given currency and at a given rate of interest and then using a swap to convert the facility into the currency and interest rate required to finance business needs.
By using these financial instruments, the Group is also able to optimize the cost of its resources and use subsidiaries’ excess cash without taking any currency risks.
On 19 November 2010, AccorHotels had announced the launch of a tender offer to repurchase parts of bonds maturing in 2013 (6.5%) and 2014 (7.5%), subject to a maximum aggregate principal amount of Euro 400,000,000 in line with its de-leveraging strategy. With this transaction, AccorHotels reduces its gross debt and optimizes its debt structure.
During the Tender Offer Period, an aggregate principal amount of Euro 283 million was validly tendered by Bond holders and accepted by AccorHotels for repurchase. The amount is split as follows:
• Euro 151m of the Euro 600m 6.5% Notes due May 2013
• Euro 132m of the Euro 600m 7.5% Notes due February 2014
All bonds purchased by AccorHotels have been immediately cancelled and will not be re-issued. The settlement of the Tender Offer was on Wednesday 1 December, 2010.
In 2011, AccorHotels pursued the partial repurchase of its bonds:
• Euro 56m of the Euro 600m 6.5% Notes due May 2013
• Euro 65m of the Euro 600m 7.5% Notes due February 2014
In 2012 and 2013, AccorHotels successfully launched two new bonds, taking advantage of favorable conditions on the credit market. These operations enable AccorHotels to both lengthen the average maturity of its debt and optimize its average cost of funding.
• Euro 700m, 2.875% Notes due June 2017
• Euro 600m, 2.5% Notes due March 2019
In 2014, AccorHotels successfully launched three new bonds, taking advantage of favorable conditions on the credit market. Those issues strengthen AccorHotels' flexibility in deploying its strategy.
• Euro 750m, 2.625% Notes due february 2021
• Euro 900m, 4,125% Notes due june 2020 with the rate reset every 5 years thereafter
• Euro 150m, 1,728%, Notes due february 2021
Credit ratings assess the credit worthiness of the Group and its ability to pay its debt.
AccorHotels is followed by the credit rating agencies Fitch Ratings and Standard & Poor’s which asign to AccorHotels the following rating:
• Fitch Ratings: BBB- with outlook stable
• Standard & Poor’s: BBB- with outlook stable