Cemex announces pricing of Senior Secured Notes

Published by Katherine Guenioui, Editor
World Cement, Friday, 05 September 2014 10:00

Cemex has announced the pricing of €400 million of its 4.750% Senior Secured Notes due 2022 denominated in Euros and US$1.1 billion of its 5.700% Senior Secured Notes due 2025 denominated in US Dollars.

The Euro Notes will bear interest at an annual rate of 4.750% and mature on 11 January 2022. The Euro Notes will be issued at par and will be callable commencing on 11 January 2018. The US Dollar Notes will bear interest at an annual rate of 5.700% and mature on January 11, 2025. The US Dollar Notes will be issued at par and will be callable commencing on 11 January 2020. The closing of the offerings is expected to occur on 11 September 2014, subject to satisfaction of customary closing 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 (including to fund a portion of the Tender Offer as defined below, if necessary), all in accordance with the Facilities Agreement.

Cemex intends to use the net proceeds from the offerings to purchase by means of a cash tender offer up to US$1 175 000 000 aggregate principal amount 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 will be approximately US$1070.00 for each US$1000 principal amount and that the purchase price of the 2020 Cemex España Dollar Notes will be approximately US$1098.75 for each US$1000 principal amount, in each case, plus accrued interest.

The Euro Notes and the US Dollar Notes will 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 will 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.