CEMEX Prepays 2017 Maturity in Credit Agreement, Has No Significant Maturities Through March 2018 & Has Reduced Debt by 19% s...
November 30 2016 - 7:30PM
Business Wire
- CEMEX is increasing the amount of
commitments in revolving facilities under the Credit Agreement by
U.S.$664 million
CEMEX, S.A.B. de C.V. (“CEMEX”) (NYSE:CX) announced today that
it has prepaid U.S.$373 million corresponding to the September 2017
amortization under the facilities agreement dated September 29,
2014, as amended from time to time (the “Credit Agreement”). With
this prepayment, and as part of an agreement reached with a group
of existing lenders in the Credit Agreement, U.S.$664 million of
currently funded commitments maturing in 2018 have been exchanged
into a revolving facility, maintaining their original amortization
schedule and the same terms and conditions.
The new revolving facility will provide CEMEX with additional
flexibility to optimize the use of proceeds from asset sales and
free cash flow while it continues to proactively manage its debt
profile.
“We remain fully committed to reach our debt reduction and
leverage ratio targets and are encouraged by the progress so far.
With this prepayment, mainly made by applying the recent proceeds
received from asset sales and free cash flow generated since
September 30, we have now reduced over U.S.$3.0 billion of total
debt plus perpetuals since December 2014, which represents
approximately a 19% reduction. Under our Credit Agreement, the
expected improvement in our leverage ratio by December 2016 would
result in a further reduction in the applicable spread, declining
to 300 bps from 350 bps as of December 2015,” said José Antonio
González, CEMEX’s Chief Financial Officer. “We now have no relevant
maturities through March 2018. We are confident that we continue
moving forward with our efforts to reach investment grade
metrics.”
With this initiative the total amount of commitments under
revolving facilities in the Credit Agreement has increased to
U.S.$1.4 billion, including U.S.$664 million under this new
revolving facility maturing in 2018 and U.S.$749 million with final
maturity in 2020.
CEMEX is a global building materials company that provides high
quality products and reliable service to customers and communities
in more than 50 countries. Celebrating its 110th anniversary, CEMEX
has a rich history of improving the well-being of those it serves
through innovative building solutions, efficiency advancements, and
efforts to promote a sustainable future. For more information on
CEMEX, please visit: www.cemex.com
This press release contains forward-looking statements and
information that are necessarily subject to risks, uncertainties,
and assumptions. Many factors could cause the actual results,
performance, or achievements of CEMEX described to be materially
different from those expressed or implied in this release. CEMEX
assumes no obligation to update or correct the information
contained in this press release.
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version on businesswire.com: http://www.businesswire.com/news/home/20161130006463/en/
CEMEX, S.A.B. de C.V.Media Relations:Jorge Pérez,
+52 (81) 8888-4334mr@cemex.comorInvestor
Relations:Eduardo Rendón, +52 (81)
8888-4256ir@cemex.comorAnalyst Relations:Lucy
Rodriguez, +1 (212) 317-6007ir@cemex.com
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