SECTION 1 -

A monthly investment report is prepared on the basis of institution, country and investment
category and presented to the Director of Finance.
2.6.6 Debt
2.6.6.1 Net financial debt
At December 31, 2009, the Group’s pro forma net financial debt was €303 million, as
illustrated in the following table.
(in millions of euros) 2007 2008 2009
Other long‐term financial debt 1,547 1,534 1,515
Short‐term financial debt 2 4 10
Bank overdrafts 3 12 41
Total Financial debt 1,552 1,550 1,566
Short‐term loans (8) (3) ‐
Marketable securities (984) (1,179) (1,222)
Cash (131) (45) (41)
Current financial assets (1,123) (1,227) (1,263)
Net debt 429 323 303
New Services’ net debt represents a hypothetical allocation of the Accor group’s debt for the
purposes of preparing pro forma financial statements. New Services currently has no financing
agreements in place (see note b1 “Pro forma adjustments to the balance sheet – Net financial debt”
to the note “Basis of preparation of pro forma financial statements” to the pro forma financial
statements included in section 10.2.1 of this prospectus). The Group intends to enter into financing
agreements in an amount approximately equivalent to its pro forma financial debt, i.e., approximately
€1.5 billion.
Given the cash flow expected during the first half of 2010, the Group has set a net debt
target of approximately €400 million at June 30, 2010.
2.6.6.2 Conditions of the Company’s future financing agreements
As of the date of this prospectus, certain lending banks have agreed, in commitment letters
dated May 10, 2010, to enter into certain financing agreements with the Group, subject to the
condition that the Group receive a debt rating of at least “solid investment grade”.
The Company expects to execute the following financing agreements prior to the combined
general shareholders’ meeting to be held on June 29, 2010:
• A syndicated loan for a maximum principal amount of €900 million (the “Club
Deal”) which would mature on June 30, 2015;
• A syndicated loan for principal amount of €600 million (the “Bridge to Bonds”)
which would mature on June 30, 2011; and
• Bilateral multi‐currency lines of credit amounting to €600 million (the “Bilateral
Lines”) maturing on June 30, 2014.
New Services will use the Club Deal and the Bridge to Bonds to reimburse its intragroup
accounts with the Accor group following the preliminary transactions that are part of the Transaction
and in advance of the shareholders’ meeting scheduled to approve the Transaction (see section 6.2 of
this prospectus). The Company intends to repay the Bridge to Bonds before maturity with the
proceeds of any bond issuance by the Group. The Company does not expect to draw on the Bilateral
Lines immediately after the completion of the Transaction; they are intended to be used to fund the
Group’s general financing requirements.
68