RWS Annual Report 2022 web - Flipbook - Page 134
Notes to the Consolidated Financial Statements (continued)
16. LOANS
Accounting policy
Loans are recognised initially at fair value, less directly attributable transaction costs. Subsequent to initial recognition,
loans are stated at amortised cost using the effective interest method. Loans are classified as current, unless the
Group has the discretion to roll over an obligation for a period of at least 12 months under an existing loan facility.
Directly attributable transaction costs are capitalised into the loans to which they relate and are amortised using the
effective interest rate method.
When an existing loan facility is replaced by another from the same lender on substantially different terms, or the
terms of an existing loan are substantially modified, such an exchange or modification is treated as the derecognition
of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is
recognised in the profit or loss in the statement of comprehensive income.
2022
£m
2021
£m
Due in more than one year
Loan
32.2
49.2
Issue costs
(2.9)
(2.0)
At 30 September
29.3
47.2
Analysis of net debt - 30 September 2022
Cash and cash equivalents
Issue costs
Non-cash
charges
£m
At 30 September
£m
0.1
8.0
101.2
1.5
(0.6)
2.9
At 1 October
£m
Acquired
£m
Cash flows
£m
92.5
0.6
2.0
-
(49.2)
-
25.5
(8.5)
(32.2)
45.3
0.6
27.1
(1.1)
71.9
(51.5)
(0.2)
13.1
(8.1)
(46.7)
(6.2)
0.4
40.2
(9.2)
25.2
At 1 October
£m
Acquired
£m
Cash flows
£m
Non-cash
charges
£m
At 30 September
£m
51.4
55.8
(13.1)
(1.6)
92.5
2.6
-
-
(0.6)
2.0
Loans (current and non-current)
(69.1)
-
17.7
2.2
(49.2)
Net debt - excluding lease liabilities - ("Net debt”)
(15.1)
55.8
4.6
-
45.3
Lease liabilities
(22.8)
(37.7)
12.6
(3.6)
(51.5)
Net debt - including lease liabilities
(37.9)
18.1
17.2
(3.6)
(6.2)
Loans (current and non-current)
Net debt - excluding lease liabilities - ("Net debt”)
Lease liabilities
Net debt - including lease liabilities
Analysis of net debt - 30 September 2021
Cash and cash equivalents
Issue costs
Non-cash charges against the loan balance represent the effects of foreign exchange on the financial liability.
On 3 August 2022, the Group entered into an Amendment and Restatement Agreement (“ARA”) with its banking
syndicate which amended its existing US$120m RCF maturing on 10 February 2024, to a US$220m RCF Facility
maturing on 3 August 2026 with an option to extend maturity to 3 August 2027.
Under the terms of the ARA, the Group’s interest margin over the Secured Overnight Financing Rate (“SOFR”)
reference interest rate ranges from 95bps to 195bps and is dependent on the Group’s net leverage. Commitment
fees are payable on all committed, undrawn funds at 35% of the applicable interest margin. The ARA also contains a
US$100 million uncommitted accordion facility.
The debt refinancing was accounted for as a debt modification without extinguishment resulting in a nominal debt
modification gain being recognised in the parent company’s statement of comprehensive income of £5k.
All transaction costs incurred in amending and re-stating the RCF have been capitalised and are being amortised over the
4-year term of the facility on a straight-line basis. Currently all Group borrowings under the RCF are denominated in USD.
134
RWS — Annual Report 2022
NOTES TO THE CONSOLIDATED STATEMENTS
