Cemex clears refinancing deal, considers asset sales

Cemex will extend maturities of bank loans by three years after its restructuring offer won acceptance from creditors holding 92.6 per cent of the debt.

The offer had to be accepted by 91 per cent of creditors to go through after the threshold was lowered from an initial 95 per cent, and the transaction is expected to become effective in the following weeks, the company said in a statement. Cemex plans to sell US$500 of new 9.5 per cent senior notes due in 2018 as part of the exchange.

The company is also now reportedly looking to sell a minority stake in its Cemex Latin American unit on the Colombian stock market. Cemex's vice president of finance, Jose Antonio Gonzalez, told Reuters on Monday that the company was considering selling other undisclosed assets, beyond the Colombia listing announced two weeks ago, to raise more cash.

Cemex has committed to paying down US$1bn in debt by the end of March 2013 as part of the broader refinancing. Analysts believe the Colombian sale will allow the company to cover most, or all, of that pay-down, lifting concerns over its liquidity situation.

Post-refinancing, Cemex's 2014 debt maturities will total just under US$1.5bn, Gonzalez added.