2008 Registration Document - Rexel

Financial investments also included the acquisition of theRexel Distribution subsidiary shares in accordance withliquidity agreements on share option plans from 2002 to2003, in an amount of €1.2 million.In 2007, financial investments included mainly a priceadjustment paid in March 2007 and related to theacquisition of GE Supply for US $9.7 million (€7.8 million)and the acquisition of APPRO 5 in France for €6.7 million,Clearlight Electrical in the United Kingdom for £5.3 million(€7.8 million), Tri-Valley Electric Supply in the UnitedStates for US $1.5 million (€1.2 million), Boutet in Belgiumfor €6.8 million and EIW in Australia for Australian$132.8 million (€84.8 million). Financial investmentsalso included the acquisition of the Rexel Distributionsubsidiary shares in accordance with liquidity agreementson share option plans from 2002 to 2003, in an amount of€3.9 million. In 2007, Rexel also disposed of the businessof the company Kontakt Systeme for a net amount of€4.9 million.Changes in long-term investmentsNet cash from changes in long term investments representsa net inflow of €853.6 million in 2008 compared to a netoutflow of €51.7 million in 2007.Net cash recorded in 2008 mainly concerned theintercompany loan repayment from the Sonepar entities foran amount of €852.4million.Net cash used in 2007 mainly reflected the acquisition ofHagemeyer shares for an amount of €56.6 million (includingtransaction costs), which represent 1.8% of the total sharecapital of Hagemeyer.7.1.3 Cash flow from financing activitiesCash flow from financing activities is comprised of changesin indebtedness, share capital issuances and payment ofdividends.In 2008, financing activities accounted for a €1,220.8 millioninflow. The net change in credit facilities accounted for€1,030.8 million and was comprised of the drawing underthe new Senior Credit Agreement for €4,256.3 million,net of transaction fees. This amount was used to acquirethe Hagemeyer shares and bonds for €3,153.1 million,as well as to repay the 2007 Senior Credit Agreementfor €947.5 million and refinance Hagemeyer existingdebt as at the acquisition date for €260.0 million.Following the sale to Sonepar of non-retained Hagemeyerentities in June and the implementation of a Europeansecuritization programme in December 2008, Rexel repaid€1,927.6 million of the Senior Credit Agreement. In May2008, Rexel redeemed the bonds issued in 1998 for a netamount of €45.7 million, corresponding to the par value ofthe bond issuance. Repayments of finance lease liabilitiesamounted to €66.3 million. The outstanding securitizationamount increased by €354.0 million, as a result of theimplementation of the new programme in December2008. Furthermore, in June 2008, a dividend of €0.37 pershare was paid to the shareholders, in a total amount of€94.4 million.In 2007, financing activities accounted for a €200.9 millionoutflow. The net proceeds from the initial public offering inthe second quarter of 2007 were €1,005.0 million. Rexelcontracted a new 2007 Senior Credit Agreement thatpermitted, together with the proceeds from the initial publicoffering, to repay in full the 2005 Senior Credit Agreementand the Senior Subordinated Notes. After an additionalrepayment in the third quarter, these operations resulted inan overall outflow of €1,212.9 million. Repayments of financelease liabilities amounted to €26.9 million. Finally, variousother changes resulted in a €33.9 million net inflow.REXEL 2008 | PAGE 83