Cemex, S.A.B. de C.V. has received US$515 million of commitments from banks that have agreed to join the credit agreement entered into on 30 September 2014. 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 from US$1.35 billion to US$1.87 billion.
The incremental amount raised will be applied to partially prepay the facilities agreement dated 17 September 2012 and to pay other debt. After the prepayment of the facilities agreement, the remaining outstanding amount under this facility will be reduced to approximately US$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:
- An increase in the amounts allowed for capital expenditures from US$800 million to US$1 billion per year.
- An increase in the amounts allowed for permitted acquisitions and investments in joint ventures from US$250 million to US$400 million per year.
- The elimination of restrictions on asset swaps.
- The introduction of a new mandatory prepayment regime that eliminates the cash sweep covenant and provides Cemex with more discretion to use its cash.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.worldcement.com/the-americas/04112014/cemex-increases-new-bank-loan-to-us-1-87-billion-786/