Cemex announces pricing of US$1bn in Senior Secured Notes

Cemex announced today the pricing of US$1bn of its 7.750 per cent Senior Secured Notes due 2026 denominated in US Dollars.

The notes will bear interest at an annual rate of 7.750 per cent and mature on 16 April 2026. They will be issued at a price of 99.986 per cent of face value and will be callable commencing on 16 April 2021. The closing of the offering is expected to occur on 16 March 2016, subject to satisfaction of customary closing conditions.

Cemex intends to use the net proceeds from the offering of the notes to fund the redemption and/or repurchase of (i) the 9.875 per cent US Dollar-Denominated Senior Secured Notes due 2019 issued by Cemex España, SA, acting through its Luxembourg branch, on 28 March 2012, (ii) the 9.875 per cent Euro-Denominated Senior Secured Notes due 2019 issued by Cemex España, SA, acting through its Luxembourg branch, on 28 March 2012, and/or (iii) the 9.500 per cent Senior Secured Notes due 2018 issued by Cemex on 17 September 2012, and the remainder, if any, for general corporate purposes, including to repay other indebtedness of Cemex and its subsidiaries, all in accordance with Cemex’s credit agreement, dated as of 29 September 2014, as amended and restated (the “Credit Agreement”).

The Notes will share in the collateral pledged for the benefit of the lenders under the Credit Agreement and other secured obligations having the benefit of such collateral, and will be guaranteed by Cemex México, SA de CV, Cemex Concretos, SA de CV, Empresas Tolteca de México, SA de CV, New Sunward Holding BV, Cemex España, SA, Cemex Asia BV, Cemex Corp, Cemex Finance LLC, Cemex Egyptian Investments BV, Cemex Egyptian Investments II BV, Cemex France Gestion (SAS), Cemex Research Group AG, Cemex Shipping BV and Cemex UK.