Financial statements N otes to the consolidated financial statements continued 18. Loans and borrowings Senior secured term loan B Transaction Loan Bank loans (TLB) costs interests Total Loans and borrowings £000 £000 £000 £000 £000 Balance at 1 January 2020 43,215 – (841) – 42.374 Additions 45,623 – (244) – 45,379 Acquired through business combinations 1,958 – – – 1,958 Repayments – – – – – Charged to profit-or-loss – – 286 – 286 Exchange rate differences 489 – (45) – 444 Total transactions during the year 48,070 – (3) – 48,067 Principal amount 93,083 – (1,442) – 91,641 Accumulated repayments (1,798) – – – (1,798) Accumulated charges to profit or loss – – 598 – 598 Balance at 31 December 2020 91,285 – (844) – 90,441 Drawdowns 24,632 318,938 (8,379) – 335,191 Acquired through business combinations 2,760 – – – 2,760 Loans waived (1,592) – – – (1,592) Repayments (110,895) – – (5,530) (116,425) Charged to profit-or-loss – – 1,283 6,169 7,452 Exchange rate differences (2,864) (3,833) (21) (15) (6,733) Total transactions during the year (87,959) 315,105 (7,117) 624 220,653 Principal amount 117,308 315,105 (9,789) – 422,624 Accumulated repayments (112,390) – – (5,488) ( 117,878) Accumulated charges to profit-or-loss (1,592) – 1,828 6,112 6,348 Balance at 31 December 2021 3,326 315,105 (7,961) 624 311,094 Repayment obligations coming year 1,899 – – 624 2,523 Long-term balance as at 31 December 2021 1,427 315,105 (7,961) – 308,571 2021 2020 Net debt reconciliation £000 £000 Cash and cash equivalents 301,021 142,052 Loans and borrowings (excluding bank overdrafts) (317,156) (90,441) Bank overdrafts (1,899) – Net debt (18,034) 51,611 A. New facility agreement On 6 August 2021, S4Capital Group signed a new facility agreement, consisting of a Term Loan B (TLB) of EUR 375 million and a multicurrency Revolving Credit Facility (RCF) of £100 million. During 2021 the RCF remained fully undrawn. The interest on the facilities is the aggregate of the variable interest rate (EURIBOR, LIBOR or, in relation to any loan in GBP, SONIA) and a margin based on leverage (between 2.25% and 3.75%). The duration of the facility agreement is seven years in relation to the TLB, therefore the termination date is August 2028, and five years in relation to the RCF, therefore the termination date is August 2026. During the reporting period, the average carried interest rate of the outstanding loans amounted to 2.96% (2020: 1.42%) The average effective interest rate for the outstanding loans is 2.93% (2020: 1.38%) and during the period interest expense of £6.2 million was recognised on a monthly basis. 150 S4Capital Annual Report and Accounts 2021