FINANCIAL AND ACCOUNTING INFORMATION sharing, to the extent the balance of it is taken into 3.90 times on one accounting date during the life of account in financial indebtedness; the Senior Facility Agreement. •Excluding the non-recurring impact of the evolution In addition to the Senior Facility Agreement, Rexel of the copper prices as disclosed in the press release entered into a bilateral Term Loan Agreement of published in connection with the consolidated €33.4 mil l ion (USD 40 mil l ion) with Wel ls Fargo financial statements for such measurement period; Bank International expiring on June 26, 2020. •After adding back any other restructuring and/ As at December 31, 2017, these credit facilities were or acquisition costs relating to any permitted undrawn. acquisition. “Adjusted total net debt” means: Borrowings from financial institutions In September 2010, Rexel launched a €500 million •Any indebtedness for or in respect of interest commercial paper program with a fixed maturity bearing debt (whether or not in cash or in kind, ranging from one to three months depending on both current and non-current) but which shal l: the notes issued, to diversify the investor base and – Exclude any upfront, legal, advisory costs minimize the cost of financing. As of December 31, related to the implementation of such debt as 2017, under this program, €41.7 mi l l ion were wel l as the financial charges accounted for as outstanding. a result of the repayment of any outstanding debt of the borrower; Other financial debts – Exclude intragroup loans between members As of December 31, 2017, other financial debts relate of the Group; mainly to intercompany debt related to the tax consolidation group. – Include any indebtedness for or in respect of any amount payable in respect of securities As of December 31, 2016, other financial debts issued by any member of the Group which are related mainly to the current account with the not mandatorily redeemable in shares; and company Rexel Développement. – Include any other amount raised under any 4.5 Financial instruments covering currency and other transaction accounted for as borrowing interest rate risks under the accounting standards; Financial instruments covering currency and interest – Any indebtedness for or in respect of accrued rate risks interest (including capital ized interest and In the course of its business, Rexel SA is exposed to any payment in kind) other than in respect market risks such as interest rate and foreign exchange of intragroup loans between members of the risks. Rexel SA uses various financial instruments to Group; less optimize its financial expenses including interest rate – Cash and cash equivalents. swaps to modify its debt structure and to cover the This ratio may exceed 3.50 on three accounting risk of interest rate increases in the currencies in which dates during the life of the Senior Facility Agreement, its debt is denominated. Derivative foreign currency being specified that only two of such three instruments include forward currency purchases accounting dates may be consecutive, and provided and sales, and have the sole objective of hedging that (i) such ratio does not exceed 3.75 times on two transactions denominated in a foreign currency. accounting dates during the life of the Senior Facility As of December 31, 2017, the outstanding hedge Agreement and (ii) such ratio does not exceed contracts were as follows: Interest rate swaps NOTIONAL AMOUNTS FAIR VALUE OF HEDGES TYPE OF CONTRACT MATURITY (IN MILLIONS OF FOREIGN CURRENCY) (IN MILLIONS OF EUROS) Interest rate swap paying EURIBOR 3 months 2022 EUR 500.0 8.6 Interest rate swap paying EURIBOR 3 months 2023 EUR 50.0 0.0 Interest rate swap paying EURIBOR 3 months 2024 EUR 300.0 (1.9) REXEL 2017 – REGISTRATION DOCUMENT 288