Cemex announces pricing on Senior Secured Notes

Cemex announces pricing on Senior Secured Notes
Published: 05 September 2014

Tagged Under: Cemex Debt Reduction 

Cemex announced the pricing of EUR400m of its 4.750 per cent Senior Secured Notes due 2022 denominated in euros and US$1.1bn of its 5.700 per cent Senior Secured Notes due 2025 denominated in US dollars.

The Euro Notes will bear interest at an annual rate of 4.750 per cent and mature on January 11, 2022. The Euro Notes will be issued at par and will be callable commencing on 11 January 2018. The US Dollar Notes will bear interest at an annual rate of 5.700 per cent and mature on 11 January 2025. The US Dollar Notes will be issued at par and will be callable commencing on 11 January 2020. The closing of the offerings is expected to occur on 11 September 2014, subject to satisfaction of customary closing conditions.

Cemex intends to use the net proceeds from the offering of the Euro Notes for general corporate purposes, including the repayment of debt under Cemex's Facilities Agreement, dated as of 17 September 2012, and/or other deby (including to fund a portion of the Tender Offer as defined below, if necessary), all in accordance with the Facilities Agreement.

Cemex intends to use the net proceeds from the offerings to purchase by means of a cash tender offer up to US$1,175,000,000 aggregate principal amount of (i) the 9.000 per cent Senior Secured Notes due 2018 issued by Cemex and (ii) the 9.250 per cent Senior Secured Notes due 2020, issued by Cemex España, acting through its Luxembourg branch, with the 2018 Cemex Dollar Notes having priority, and the remainder, if any, for general corporate purposes, including the repayment of indebtedness under the Facilities Agreement and/or other indebtedness, all in accordance with the Facilities Agreement.

Cemex currently expects that the purchase price of the 2018 Cemex Dollar Notes will be approximately US$1070.00 for each US$1,000 principal amount and that the purchase price of the 2020 Cemex España Dollar Notes will be approximately US$1098.75 for each US$1000 principal amount, in each case, plus accrued interest.