Euronext - 2019 Universal Registration Document

Financial Statements

Consolidated Statement of Changes in Equity

NOTE 29 BORROWINGS

2019

2018

In thousands of euros

Non-current Borrowings

Senior Unsecured Note #1(a) Senior Unsecured Note #2 Bond discount and issue costs

519,866 500,000

507,999

-

(9,478)

(3,405)

Amortisation discount and issue costs

1,128

334

Other

12

12

504,940

TOTAL

1,011,527

Current Borrowings (accrued interest) Accrued interest

6,750 6,750

3,745 3,745

TOTAL

(a) The Senior Unsecured Note #1 is carried at amortised cost and adjusted for fair value movements due to the hedged interest rate risk (see Note 23).

Senior Unsecured Note #1 On 18 April 2018, the Group issued a €500 million Bond (“Senior Unsecured Note #1”) to refinance its 2017 and 2018 acquisitions and diversify its financing mix. The Bond has a seven year maturity, with an annual coupon of 1%. On 18 April 2018 the Bond, rated “A” by Standard & Poor’s rating agency, was listed on Euronext Dublin. The Bond issue included €2.9 million of Bond discount and €0.5 million of issue costs, which are subsequently accounted for under the Effective Interest Rate method. Following receipt of the proceeds of the Bond issue, the Group repaid a €165.0 million Bank Loan facility in 2018. Senior Unsecured Note #2 On 4 June 2019, the Group issued a €500 million Bond (“Senior Unsecured Note #2”) to (i) pre-finance the outstanding shares of Oslo Børs VPS Holding ASA not already owned by the Group and (ii) for general corporate purposes in line with the Group’s strategy. The Bond has a ten year maturity, with an annual coupon of 1.125%. On 12 June 2019 the Bond, rated “A-” by S&P Global Ratings Limited, was listed on Euronext Dublin. The Bond issue included €6.1 million of Bond discount and issue costs, which are subsequently accounted for under the Effective Interest Rate method.

Revolving Credit Facility On 8 April 2019, the Group signed a supplemental agreement with nine banks to amend the €250 million RCF originally dated 12 April 2017. This new agreement enabled the Group to increase the RCF to €400.0 million and set a new maturity of 5 years plus a two-year extension possibility. The revolving credit facility agreement allows the Group to apply all amounts borrowed by it towards (i) general corporate and/or working capital purposes of the Group, (ii) satisfaction of the consideration payable for an acquisition and/or (iii) the payment of fees, costs and expense incurred in relation to an acquisition. The revolving credit facility bears an interest rate of EURIBOR plus a margin initially set at 0.25%, which increased to 0.30% on 31 May 2019, based on the “A-” rating. It should be noted that as at 31 December 2019, no advances have been drawn under the revolving credit facility. During the year, the Group had temporarily drawn €45.0 million which it used for repayment of the bond loan, that was included in the acquisition of Oslo Børs VPS (see Note 5). The Group repaid this €45.0 million at the end of 2019. Euronext is required to maintain compliance with a maximum leverage ratio if the credit rating would drop below BBB+. The maximum leverage ratio measures Euronext total gross debt to EBITDA 2 (as such terms are defined in the Facilities Agreement). Euronext is required tomaintain a leverage ratio of nomore than 3.5x.

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NOTE 30 POST-EMPLOYMENT BENEFITS

trusts, foundations or similar entities, governed by local regulations and practice in each country. The assets for these plans are generally held in separate trustee administered funds. The benefits provided to employees under these plans are based primarily on years of service and compensation levels.

The Group operates defined benefit pension plans for its employees, with themost significant plans being in France, Portugal and Norway. The Group’s plans are funded by contributions from the employees and the relevant Group entities, taking into account applicable government regulations and the recommendations of independent, qualified actuaries. The majority of plans have plan assets held in

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2019 UNIVERSAL REGISTRATION DOCUMENT