Cemex announced today the completion of its financial plan for 2012, which included several transactions to refinance and/or prepay debt scheduled to mature through 2014, thereby increasing the company’s financial flexibility and significantly reducing its refinancing risk.
Under this year’s financial plan, Cemex reduced the amount of debt maturing through March 2015 to about US$650m, at currently prevailing foreign-exchange rates, of which approximately US$600m matures during the first quarter of 2014. In addition, the average life of debt increased to 5.6 years, from 3.8 years at the beginning of this year, with no significant change in yearly interest expense.
The execution of the 2012 financial plan included various transactions, among others:
• Refinancing of close to US$6.7bn of debt under the Financing Agreement dated as of August 14, 2009, as amended (Financing Agreement), into a new Facilities Agreement (New Facilities Agreement) with a final maturity in 2017 and US$500m of new senior secured notes due 2018. The New Facilities Agreement provides Cemex with more flexible operating and financial covenants.
• Issuance of US$940m in new senior secured notes maturing in 2019 in exchange for approximately US$452m in perpetual debentures and US$619m in 2014 Eurobonds, resulting in a reduction of Cemex’s overall indebtedness of US$131m.
• Issuance of US$1.5bn of new senior secured notes due 2022 (2022 Notes).
• Initial share offering of a 26.65% minority position in Cemex Latam Holdings, SA (CLH), resulting in net proceeds of about US$960m.
