Cemex announces offering of senior secured notes

Cemex announced today its intention to offer senior secured notes in one or more series denominated in Euros, subject to market and other conditions. Contemporaneous with the offering of the Euro Notes, the Issuer may also offer senior secured notes in one or more series denominated in US Dollars, subject to market and other conditions.

Cemex intends to use the net proceeds from the offering of the Euro Notes for general corporate purposes, including the repayment of indebtedness under Cemex’s Facilities Agreement, dated as of 17 September 2012, and/or other indebtedness, all in accordance with the Facilities Agreement.

If the US Dollar Notes are issued, Cemex intends to use the net proceeds from the offering of the US Dollar Notes to purchase a portion of (i) the 9.000% Senior Secured Notes due 2018 issued by Cemex (the “2018 Cemex Dollar Notes”) and (ii) the 9.250% Senior Secured Notes due 2020, issued by Cemex España, S.A., acting through its Luxembourg branch (the “2020 Cemex España Dollar Notes”), with the 2018 Cemex Dollar Notes having priority, and the remainder, if any, for general corporate purposes, including the repayment of indebtedness under the Facilities Agreement and/or other indebtedness, all in accordance with the Facilities Agreement. Cemex currently expects that the purchase price of the 2018 Cemex Dollar Notes would be approximately US$1070.00 for each U.S.$1000 principal amount and that the purchase price of the 2020 Cemex España Dollar Notes would be approximately US$1098.75 for each US$1000 principal amount, in each case, plus accrued interest.

The Euro Notes and any US Dollar Notes would share in the collateral pledged for the benefit of the lenders under the Facilities Agreement and other secured obligations having the benefit of such collateral, and would be guaranteed by Cemex México, S.A. de C.V., Cemex Concretos, S.A. de C.V., Empresas Tolteca de México, S.A. de C.V., New Sunward Holding B.V., Cemex España, S.A., Cemex Asia B.V., Cemex Corp., Cemex Finance LLC, Cemex Egyptian Investments B.V., Cemex Egyptian Investments II B.V., Cemex France Gestion (S.A.S.), Cemex Research Group AG, Cemex Shipping B.V. and Cemex UK.

Adapted from press release by Katherine Guenioui

Read the article online at: https://www.worldcement.com/the-americas/04092014/cemex-announces-offering-of-senior-secured-notes-420/