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Cemex continues to follow through on refinancing deal

World Cement,

Following recent predictions that it will achieve a 9% growth in its EBITDA in 3Q12, Cemex has announced the pricing of an aggregate principal amount of US$1.5 billion in senior secured notes denominated in US$.

The Notes, to be issued by Cemex Finance LLC, will bear interest at an annual rate of 9.375% and come to maturity in 2022. The Notes will be issued at par and will be callable as of their 5th anniversary. The offering is expected to close on 12 October 2012, subject to the satisfaction of customary closing conditions.

CEMEX intends to use the net proceeds from sale to prepay principal outstanding under its ‘Facilities Agreement’, dated 17 September 2012, and as a result, the company can satisfy its 31 March 2013 US$ 1 billion prepayment milestone and its 14 February 2014 amortisation payment of US$ 500 million.

Together, these payments will reduce the interest rate on the Facilities Agreement debt by 25 basis points and prove that Cemex is following through strongly on the details of its refinancing deal.

Adapted from press release by Jack Davidson.

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