Financial Reporting - Rexel

Credit Facility
Commitment
(in millions of
euros)
Balance due as of
December 31, 2011
(in millions of euros)
Facility A 195.4 -
Facility B 1,074.0
2009 Senior Credit
Facilities subtotal
1,269.4
-
-
Bilateral facility 30.6 30.6
TOTAL 1,300.0 30.6
Interests and margin
These multicurrency credit facilities carry interest at EURIBOR or LIBOR rates depending on the currency in
which amounts are drawn, plus a margin which varies depending on the leverage ratio.
At December 31, 2011 the applicable margin stood at 2.00% for Facility A and 2.25% for Facility B.
The margin applicable varies in accordance with the ranges in which the Pro Forma Leverage Ratio (as
defined below) falls at the end of each semester as set out below:
Leverage Ratio
Facility A
Margin
Facility B
Margin
Greater than or equal to 5.00:1 ……………………………. 4.25% 4.50%
Less than 5.00:1 but greater than or equal to 4.50:1 …….. 3.50% 3.75%
Less than 4.50:1 but greater than or equal to 4.00:1……… 3.00% 3.25%
Less than 4.00:1 but greater than or equal to 3.50:1 …….. 2.50% 2.75%
Less than 3.50:1 but greater than or equal to 3.00:1 ……. 2.00% 2.25%
Less than 3.00:1 but greater than or equal to 2.50:1 …….. 1.75% 2.00%
Less than 2.50:1 ………………………………………………. 1.50% 1.75%
In addition, the applicable margin shall be increased by a utilization fee equal to:
• 0.25% per annum pro rata temporis for the period during which the facilities are drawn down for an
amount less than or equal to 66% but greater than 33% of the total commitments; and
• 0.50% per annum pro rata temporis for the period during which the facilities are drawn down for an
amount greater than 66% of the total commitments.
Rexel shall also pay a commitment fee in the base currency computed at the rate of 40% of the applicable
margin on that lender’s available commitment under each facility.
Covenant (Pro Forma Leverage Ratio)
The Pro Forma Leverage Ratio corresponds to adjusted consolidated net debt relative to adjusted
consolidated EBITDA, as such terms are defined below:
Adjusted Consolidated EBITDA means operating income before other income and other expenses, plus
depreciation and amortization as set forth in the Group’s consolidated financial statements and:.
• includes adjusted EBITDA over the last 12 months of all of the companies acquired during the
relevant period, pro rata to the Group’s participation;
• includes proceeds relating to commodity price derivatives to hedge exposure to price fluctuations of
certain commodities which do not qualify for cash flow hedge accounting under IFRS;
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