CEMEX Announces Successful Execution of U.S. $1.15 Billion Multi-Tranche Term Loan Agreement.Business Editors MONTERREY, Mexico--(BUSINESS WIRE)--Oct. 15, 2003 CEMEX CEMEX Cementos Mexicanos , S.A. de C.V. (NYSE NYSE See: New York Stock Exchange : CX) announced today that its Netherlands subsidiary, New Sunward Holding B.V., has executed a Multi-tranche Term Loan Agreement in an amount equivalent to U.S.$1.15 billion guaranteed by CEMEX, S.A. de C.V., CEMEX Mexico, S.A. de C.V. and Empresas Tolteca de Mexico, S.A. de C.V. The Term Loan Agreement includes three different tranches denominated in euros, dollars and yen. The first tranche is a two-year euro denominated loan in the amount of EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 256,365,000. The second tranche is a three-year dollar denominated loan in the amount of U.S.$550,000,000. The third tranche is a three-year yen denominated loan in the amount of YEN32,688,000,000. The second and third tranches can be extended for an additional period of six months, subject to certain provisions in the agreement. Rodrigo Trevino, Chief Financial Officer, said: "This transaction represents yet another important step towards a simpler capital structure, allowing us to reduce the use of currency derivatives by borrowing directly in yen. The proceeds will let us anticipate the refinancing of the outstanding U.S.$400 million under our Revolving Credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. Facility, and prepay the remaining U.S.$650 million balance of the preferred equity issued in connection with our acquisition of Southdown in 1999, representing a significant portion of our refinancing needs for 2004." The Joint Bookrunners of this transaction are Citigroup Global Markets, Inc. and J.P. Morgan Securities, Inc. The Syndication Agent is Credit Agricole Indosuez/Credit Lyonnais. The Administrative Agent is Citibank, N.A. The Mandated Lead Arrangers Lead arranger The senior tier of arranger are Citibank, N.A., ABN AMRO ABN AMRO Algemene Bank Nederland-Amsterdam Roterdam Bank (Dutch bank) Bank N.V., BNP Paribas BNP Paribas (Euronext: BNP, TYO: 8665 ) is one of the main banks in Europe and France. It was created on 23 May 2000 through the merger of Banque Nationale de Paris (BNP) and Paribas. , Citigroup Global Markets, Inc., Credit Agricole Indosuez/Credit Lyonnais, J.P. Morgan Securities and Santander Central Hispano. CEMEX is a leading global producer and marketer of cement and ready-mix products, with operations concentrated in the world's most dynamic cement markets across four continents. CEMEX combines a deep knowledge of the local markets with its global network and information technology systems to provide world-class products and services to its customers, from individual homebuilders to large industrial contractors. For more information, visit www.cemex.com. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion