Holiday Inn 2014 Annual Report Download - page 77

• the 10-year £400m bond issued by the Company on
28 November 2012, under which, if the bond’s credit rating
was downgraded in connection with a change of control, the
bond holders would have the option to require the Company
to redeem or, at the Company’s option, repurchase the
outstanding notes together with interest accrued; and
• the six-month $400m term loan facility agreement dated
13 January 2015, under which a change of control of the
Company would entitle the lender to declare all amounts
due to it payable.
Further details on these are set out on pages 169 and 170.
Business relationships
During 2012, the Group entered into a five-year technology
outsourcing agreement with International Business Machines
Corporation (IBM), pursuant to which IBM operates and maintains
the infrastructure of the Group’s reservations system. Otherwise,
there are no specific individual contracts or arrangements
considered to be essential to the business of the Group as a whole.
Existence of qualifying indemnity provisions
For details, see Directors’ and Officers’ Liability Insurance Policy
on page 72.
Disclosure of information to the Auditor
For details, see page 94.
Events after the reporting period
On 13 January 2015, the Group raised a $400m bilateral term loan
to help finance the acquisition of Kimpton Hotel & Restaurant
Group, LLC; the term loan expires in July 2016.
On 16 January 2015, the Group completed the acquisition of
Kimpton Hotel & Restaurant Group, LLC for $430m in cash
(see page 153).
Listing Rules – compliance with LR 9.8.4C
Section Applicable sub-paragraph within LR 9.8.4C Location
1Interest capitalised Financial Statements,
note 6, page 122
2Publication of unaudited
financial information
n/a
4Details of long-term incentive
schemes
Directors’
Remuneration Report,
pages 79, 80 and
84 to 86
5Waiver of emoluments by a Director n/a
6Waiver of future emoluments
by a Director
Directors’
Remuneration
Report, page 91
7Non pre-emptive issues of equity
for cash
n/a
8Item (7) in relation to major
subsidiary undertakings
n/a
9Parent participation in placing
by a listed subsidiary
n/a
10 Contracts of significance n/a
11 Provision of services by a
controlling shareholder
n/a
12 Shareholder waivers of dividends n/a
13 Shareholder waivers of future
dividends
n/a
14 Agreements with controlling
shareholders
n/a
Going concern
An overview of the business activities of IHG, including a review
of the key business risks that the Group faces, is given in the
Strategic Report on pages 2 to 51 and in the Group Information
on pages 162 to 170. Information on the Group’s treasury
management policies can be found in note 20 to the Group
Financial Statements on pages 135 to 137. The Group refinanced
its bank debt in November 2011 and put in place a five-year
$1.07bn facility. In December 2009, the Group issued a seven-year
£250m sterling bond and, in November 2012, a 10-year £400m
sterling bond. Subsequent to the year end the Group raised a
$400m term loan to help finance the acquisition of Kimpton Hotel
& Restaurant Group, LLC; the term loan expires in July 2016.
At the end of 2014, the Group was trading significantly within
its banking covenants and debt facilities.
The Group’s fee-based model and wide geographic spread
means that it is well placed to manage through uncertain times
and our forecasts and sensitivity projections, based on a range
of reasonably possible changes in trading performance, show
that the Group should be able to operate within the level of its
current facilities.
After making enquiries, the Directors have a reasonable
expectation that the Company and the Group have adequate
resources to continue in operational existence for the foreseeable
future and, accordingly, they continue to adopt the going concern
basis in preparing the Financial Statements.
By order of the Board
George Turner, Company Secretary
InterContinental Hotels Group PLC
Registered in England and Wales, Company number 5134420
16 February 2015
75
STRATEGIC REPORT GOVERNANCE
GROUP FINANCIAL STATEMENTS
PARENT COMPANY FINANCIAL STATEMENTS
ADDITIONAL INFORMATION