Skip to main content

Cemex refinancing deal complete

World Cement,

Cemex has completed its plan to refinance US$7.2 billion of debt and push back maturities by up to four years, giving the company time it needs to get back to full strength.

In 2008, the U.S. housing crash hit the cement industry hard, not long after Cemex acquired Australian company Rinker for US$16 billion.

The last week has seen the company and all but a few of its creditors finally settling on new agreements that include a debt swap and a US$1 billion prepayment in March 2013, as well as the asset sales we reported last month.

Those creditors who were in agreement will now receive around US$6.16 billion in a combination of new loans and new dollar private placement notes, plus US$500 million of new, high-yield notes, though these are not due until 2018.

About US$525 million in loans and private placement notes ­– from the previous financing agreement dated August 2009 – will remain as outstanding for now. This amount is due in 1Q14.

Cemex's Executive Vice President of Finance and Administration, Fernando Gonzalez, said, "We intend to continue to proactively address our maturities and work toward reducing our leverage and strengthening our capital structure."

The company’s stock rose to its highest levels in more than a year and a half once news spread that creditors had agreed to the debt swap. Alongside investment in the Philippines and rebranding in Colombia, this latest development is a sure sign that Cemex is on the road to recovery.

Edited from various sources by Jack Davidson.

Read the article online at:


Embed article link: (copy the HTML code below):