Cemex completes refinancing deal, Mexico

Cemex completes refinancing deal, Mexico
Published: 18 September 2012

Tagged Under: Cemex Mexico Debt 

Cemex said on Monday it has completed its plan to refinance US$7.2bn of debt and push back maturities by up to four years.

Last week, the company and nearly all of its creditors finally settled on a new agreement that includes a debt swap, a US$1bn prepayment in March 2013, some asset sales, and revised financial covenants.

Participating creditors will now receive about US$6.16bn in a combination of new loans and new dollar private placement notes, plus US$500m of new, high-yield notes due in 2018, Cemex said in a press release.

About $525m in loans and private placement notes – from the previous financing agreement dating to August 2009 – will remain outstanding and will come due in February 2014.

"We intend to continue to proactively address our maturities and work toward reducing our leverage and strengthening our capital structure," Fernando Gonzalez, Cemex's executive vice president of finance and administration, said in the release.

Chief Executive Lorenzo Zambrano has been under pressure, and has sought to reassure investors that the former emerging-market darling can reduce its debt burden.