FINANCIAL AND ACCOUNTING INFORMATION 22. Financial liabilities This note provides information on financial liabilities as of December 31, 2017. Financial liabilities include interest-bearing loans from financial institutions, borrowings and accrued interests less transaction costs. 22.1 Net financial debt As of December 31, 2017, Rexel’s consolidated net debt stood at €2,041.2 million, consisting of the following items: AS OF DECEMBER 31, 2017 2016 NON- NON- (in millions of euros) CURRENT CURRENT TOTAL CURRENT CURRENT TOTAL Senior notes – 1,446.6 1,446.6 – 1,480.9 1,480.9 Securitization – 1,007.6 1,007.6 367.9 718.2 1,086.0 Bank loans 12.1 1.8 13.9 18.6 3.2 21.8 Commercial paper 41.7 – 41.7 131.7 – 131.7 Bank overdrafts and other credit facilities 100.6 – 100.6 84.5 – 84.5 Finance lease obligations 6.2 14.3 20.5 6.8 16.9 23.7 Accrued interests (1) 6.3 6.3 6.3 6.3 – – Less transaction costs (5.1) (19.7) (24.7) (5.9) (24.1) (30.0) Total financial debt and accrued interest 161.8 2,450.5 2,612.3 610.0 2,195.1 2,805.1 Cash and cash equivalents (563.6) (619.3) Accrued interest receivable (1.0) (0.9) Debt hedge derivatives(2) (6.5) (12.3) Net financial debt 2,041.2 2,172.6 (1)Of which accrued interests on Senior Notes for €2.5 million as of December 31, 2017 (€2.5 million as of December 31, 2016). (2) Debt hedge derivatives include fair value hedge interest rate derivatives and foreign exchange derivatives designated as hedge of financial debt. 22.1.1 Senior Facility Agreement are made available in currencies other than Euro, (ii) The Senior Facility Agreement executed on March 15, the applicable margin, (iii) certain premia for loans in 2013 and further amended on November 13, 2014 currencies other than Euro and (iv) mandatory costs and on October 28, 2016 provides for a five- (representing the costs to be borne by the lenders year multicurrency revolving credit facility for an for the financing of the banking control system aggregate maximum initial amount of €1,100 million imposed by the banking regulatory authorities of reduced to €982 mil lion until November 13, 2019, their respective countries), if any. and €910 million until November 12, 2021 with BNP Swingline drawings bear interest at a rate determined Paribas, Crédit Agricole Corporate and Investment in reference to (i) the EONIA rate, (ii) the applicable Bank, Crédit Industriel et Commercial, HSBC France, margin and (iii) mandatory costs, if any. ING Bank France, Natixis and Société Générale as Mandated Lead Arrangers and Bookrunners. On The initial applicable margin is 1.25% per annum January 31, 2018, the Senior Facil ity Agreement and varies in accordance with the leverage ratio was amended to extend the final maturity date to (defined as the ratio of consolidated adjusted total January 31, 2023 and reduce the committed amount net debt to consolidated adjusted EBITDA, in each to €850 million. Facilities can also be drawn down case as such terms are defined under the Senior through swingline loans for an aggregate amount of Facility Agreement) calculated as of December 31 €137.8 million. and June 30 of every year. The margin ranges from 0.60% to 2.25%. Interest and margin In addition, the applicable margin shall be increased Amounts drawn bear interest at a rate determined by a utilization fee that varies depending on the in reference to (i) the EURIBOR rate when funds are percentage of the total commitment drawn under made available in Euro or the LIBOR rate when funds the Senior Facility Agreement at any given time. REXEL 2017 – REGISTRATION DOCUMENT 254