CEMEX Increases New Bank Loan to U.S.$1.87 Billion and Successfully Concludes Amendment to Facilities Agreement
November 03 2014 - 5:20PM
Business Wire
- Incremental amount further extends
CEMEX´s debt maturity profile and reduces cost of debt
CEMEX, S.A.B. de C.V. (“CEMEX”) (NYSE: CX) announced today that
it has received U.S.$515 million of commitments from banks that
have agreed to join the credit agreement entered into on September
30, 2014 (the “Credit Agreement”).
Following the completion of customary closing conditions, the
banks that provided the new commitments will accede the Credit
Agreement as additional lenders, increasing the total amount of the
Credit Agreement from U.S.$1.35 billion to U.S.$1.87 billion.
The incremental amount raised will be applied to partially
prepay the Facilities Agreement dated September 17, 2012 (as
amended from time to time, the "Facilities Agreement") and to pay
other debt. After the prepayment of the Facilities Agreement, the
remaining outstanding amount under this facility will be reduced to
approximately U.S.$2.05 billion, scheduled to mature in 2017.
Additionally, CEMEX announced it has obtained the required
consents to amend the Facilities Agreement so the covenants and
undertakings under this facility are conformed to those of the
Credit Agreement. The main amendments include:
- The amounts allowed for capital
expenditures are increased from U.S.$800 million to U.S.$1 billion
per year;
- The amounts allowed for permitted
acquisitions and investments in joint ventures are increased from
U.S.$250 million to U.S.$400 million per year;
- The restrictions on asset swaps are
eliminated; and
- A new mandatory prepayment regime that
eliminates the cash sweep covenant and provides CEMEX with more
discretion to use its cash is introduced.
CEMEX is a global building materials company that provides
high-quality products and reliable services to customers and
communities in more than 50 countries. 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.
This press release contains forward-looking statements and
information that are necessarily subject to risks, uncertainties,
and assumptions. No assurance can be given that the transactions
described herein will be consummated or as to the ultimate terms of
any such transactions. CEMEX assumes no obligation to update or
correct the information contained in this press release. Terms like
“capital expenditures”, permitted acquisitions” and “permitted
investments” have the meaning ascribed to them in the Facilities
Agreement and in the Credit Agreement.
Media RelationsJorge Pérez, +52 (81)
8888-4334mr@cemex.comorInvestor RelationsEduardo Rendón, +52 (81)
8888-4256ir@cemex.comorAnalyst RelationsLuis Garza, +52 (81)
8888-4136ir@cemex.com
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