Cemex, a cement and building materials company, has fully repaid an outstanding amount of approximately US$1.94 billion that came about as a result of a facilities agreement in 2012, ahead of its maturity in February 2017. The repayment was assisted by new funds from 17 financial institutions, agreed as part of a deal made in September 2014.
Cemex credit agreement
A new credit agreement has been established, which will allow Cemex to increase the average life of its syndicated bank debt to approximately 4 years. Other financial institutions may join the credit agreement in the following months.
Under this credit agreement, the total amount owed is approximately US$3.79 billion. This figure includes around €620 million and US$3.12 billion. The credit agreement now has an amortisation profile of approximately 10% in 2017, 25% in 2018, 25% in 2019 and 40% in 2020.
A single agreement under improved conditions
Jose Antonio González, Cemex’s Chief Financial Officer, said: “We have now consolidated our syndicated bank debt in a single agreement under improved conditions that better reflect our financial metrics. We are pleased with the interest shown by the bank market in this transaction and the continued support of our lenders.”
Currently, the applicable margin under the credit agreement, considering Cemex’s debt leverage ratio as of 30 June 2015, is 350 basis points. This represents an improvement compared to the 2012 facilities agreement’s margin of 450 basis points. This initial reduction of 100 basis points in the applicable margin translates into approximately US$20 million of interest expense.
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/the-americas/04082015/cemex-refinances-its-2012-facilities-agreement-264/