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Cemex announces proposed offering of convertible subordinated notes

World Cement,

In an attempt to pay its debt, Cemex has announced its intention to offer convertible subordinated notes, of which US$600 million will be due in 2016 and US$600 million due two years later in 2018.

The offer, which is subject to market and other conditions, is exempt from registration under the US Securities Act of 1933, as amended.

Cemex expects to grant the financial institutions acting as the initial purchasers of the notes 30-day over-allotment options to purchase up to US$90 million additional aggregate principal amount of the 2016 notes and up to US$90 million additional aggregate principal amount of the 2018 notes.

The notes will be convertible into American Depositary Shares (ADSs), of Cemex based on conversion rates to be determined.

In connection with the offering of the notes, Cemex also announced its intension to enter into capped call transactions with certain financial institutions. The company stated its belief that these transactions will reduce the potential costs upon future conversion of the notes.

Cemex intends to use the net proceeds from the offering of the notes to fund the purchase of the capped call transactions and to repay indebtedness.

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