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CEMEX prices EUR650m senior secured notes due 2024.

M2 EQUITYBITES-November 29, 2017-CEMEX prices EUR650m senior secured notes due 2024


CEMEX SAB de CV (NYSE:CX) disclosed on Wednesday that it has priced EUR650m of its 2.750% senior secured notes due 2024.

The notes will bear an annual interest rate of 2.750% and mature on 5 December 2024. These will be issued at 100.000% of face value and will be callable as on 5 December 2020. The closing of the offering that is subject to satisfaction of customary closing conditions, will occur on 5 December 2017.

CEMEX will use the net proceeds to finance the redemption of all or a part of USD610.7m outstanding total of the 6.500% senior secured notes due 2019 issued by it on 12 August 2013 and/or EUR400m outstanding total of the 4.750% senior secured notes due 2022 issued by it on 11 September 2014.

Also, the company said that the remainder of the net proceeds, if any, will be used for general corporate purposes such as repayment of other debt as per its facilities agreement, dated as of 19 July 2017 (the 2017 credit agreement), entered into with several financial institutions. Pending such application, proceeds may also be applied to temporarily reduce outstanding amounts under the revolving credit facility tranche of the 2017 Credit Agreement or short-term bilateral facilities.

Finally, the notes will be guaranteed by CEMEX MAaAaAeA@xico SA de CV, CEM Concretos SA de CV, Empresas Tolteca de MAaAaAeA@xico SA de CV, New Sunwa Holding BV, CEMEX EspaAaAaAeA~a SA, Cemex Asia BV, CEMEX Finance LLC, CEM Corp, Cemex Egyptian Investments BV, CEMEX France Gestion (SAS), Cemex Research Group AG and CEMEX UK, which will all share in the collateral pledged for the benefit of the lenders under the 2017 Credit Agreement and other secured obligations having the benefit of such collateral.

CEMEX together with its subsidiaries, produces, markets, distributes and sells cement, ready-mix concrete, aggregates, clinker and other construction materials. It also offers various complementary construction products, provides building solutions and information technology solutions and services. The company operates in Mexico, the US, Europe, South America, the Caribbean, Asia, the Middle East and Africa. Founded in 1906, it is based in San Pedro Garza GarcAaAaAeA a, Mexic

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Publication:M2 EquityBites (EQB)
Date:Nov 29, 2017
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