CEMEX has announced that it has successfully closed the amendment process under its facilities agreement, dated as of 19 July 2017, as amended and restated from time to time (the ‘Facilities Agreement’), entered into with several financial institutions.
As part of this amendment to the Facilities Agreement, CEMEX is extending approximately US$1.1 billion of term loan maturities by three years, from 2022 to 2025, and approximately US$1.1 billion of commitments under the revolving credit facility by one year from 2022 to 2023. In addition, CEMEX will prepay about US$530 million corresponding to the July 2021 amortisation under the Facilities Agreement to those institutions participating in the extension. This transaction improves CEMEX’s debt profile resulting in no relevant debt maturities through July 2023.
Under the amendment, CEMEX is also redenominating approximately US$313 million of previous US dollar exposure under the term loans that are part of the Facilities Agreement to Mexican pesos, as well as close to US$82 million to euros. Aside from the new Mexican Pesos tranche, which includes a lower interest rate margin grid, pricing for all other tranches is unchanged.
Aligned with CEMEX’s Climate Action strategy and the company’s ultimate vision of a carbon-neutral economy, tranches under the Facilities Agreement amounting to approximately US$3.2 billion will incorporate five sustainability-linked metrics, including reduction of net CO2 emissions per cementitious product and power consumption from green energy in cement, among other indicators. The annual performance in respect to these five metrics may result in a total adjustment of the interest rate margin under these tranches of up to plus or minus five basis points.
"We are pleased with this transaction, which allows us to improve our debt maturity profile and underscores CEMEX's commitment to sustainability as one of our key strategic pillars," said Maher Al-Haffar, CEMEX's Chief Financial Officer. "We are especially proud that this transaction represents one of the largest sustainability-linked loans in the world, and we would like to take this opportunity to thank our bank syndicate for their continued support."
Along with other technical amendments, CEMEX tightened its consolidated leverage ratio covenant under the Facilities Agreement from 7.00x to a limit of 6.25x for the periods ending on 30 September 2020, 31 December 2020 and 31 March 2021.
Read the article online at: https://www.worldcement.com/europe-cis/14102020/cemex-extends-facilities-agreement/