Cemex announced that it has successfully completed its refinancing plan. Cemex had previously announced that it had selected five banks to coordinate a global effort to: i) negotiate new long-term syndicated facilities to replace existing short-term bilateral facilities; ii) extend the maturity by one year of a portion of the US$3bn Rinker acquisition syndicated loan facility due in December 2009 and iii) amend the leverage ratio covenant, among other conditions, of certain existing syndicated loan facilities.
The final key components of the refinancing plan include:
• First, US$2.3bn of short-term bilateral facilities originally scheduled to mature in 2009 and early 2010 were refinanced in two long-term syndicated facilities. The final maturity for the amounts refinanced in these new long-term facilities is February 2011, with US$607 million dollars amortizing in 2009 and US$536 million dollars amortizing in 2010.
• Second, Cemex extended to December 2010 US$1.7 billion dollars of the US$3 billion syndicated loan facility which was originally due in December of 2009.
• Third, Cemex amended and increased in December 2008, among other terms, the leverage ratio provisions in its existing syndicated facilities. The new leverage ratio requirement at the CEMEX, S.A.B. de C.V. level is a Net Debt of no more than 4.5 times the trailing-twelve-month EBITDA in December 31, 2008, increasing to 4.75 times in June 30, 2009, and gradually decreasing to 3.5 times by September 30, 2011 and thereafter.
Rodrigo Treviño, Cemex’s Chief Financial Officer, said: “We are pleased with the outcome of this refinancing, as it demonstrates the health of Cemex’s business model and it is evidence of the support of our banks. This was another important step to strengthen our capital structure and to lengthen the maturity profile of our debt.”