Huazhu Group gets leverage covenant waiver under three-year loan

By Sarah Lizee

Olympia, Wash., April 24 – Huazhu Group Ltd. announced a leverage covenant waiver for its existing $500 million and €440 million three-year syndication loan.

On April 17, the syndication banks approved to release Huazhu from the original six-month-tested financial covenants for a period up to June 30, 2021, subject to the satisfaction of some amended covenants.

The amended covenants mainly include the minimum EBITDA requirement of RMB 1 billion for the second half of 2020, net asset value should be more than zero and no cash dividend during the waiver period.

Huazhu Group Ltd. is a hotel operator and franchisor based in Shanghai. It was previously known as China Lodging Group Ltd.

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