Cemex prepays $373 million, rolls $664 million into new revolver

By Angela McDaniels

Tacoma, Wash., Nov. 30 – Cemex, SAB de CV prepaid $373 million corresponding to the September 2017 amortization under its Sept. 29, 2014 facilities agreement, according to a company news release.

With this prepayment and as part of an agreement reached with a group of existing lenders in the credit agreement, $664 million of currently funded commitments maturing in 2018 have been exchanged into a revolving facility, maintaining their original amortization schedule and the same terms and conditions.

The company said the new revolver will give it additional flexibility to optimize the use of proceeds from asset sales and free cash flow while it manages its debt profile.

With this initiative the total amount of commitments under revolving facilities in the credit agreement has increased to $1.41 billion, including $664 million under this new revolver maturing in 2018 and $749 million with final maturity in 2020.

“With this prepayment, mainly made by applying the recent proceeds received from asset sales and free cash flow generated since Sept. 30, we have now reduced over $3 billion of total debt plus perpetuals since December 2014, which represents approximately a 19% reduction,” chief financial officer Jose Antonio Gonzalez said in the news release.

“Under our credit agreement, the expected improvement in our leverage ratio by December 2016 would result in a further reduction in the applicable spread, declining to 300 bps from 350 bps as of December 2015.

“We now have no relevant maturities through March 2018. We are confident that we continue moving forward with our efforts to reach investment-grade metrics.”

Cemex is a building materials maker based in Monterrey, Mexico.

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