Mexico's Cemex repays debt with new $800 million bank loan

By Reshmi Basu

New York, July 1 - Cemex SA de CV said it has obtained an $800 million loan to repay debt and lower borrowing costs.

The Monterrey-based company said it terminated its $300 million U.S. commercial paper program and will repay $550 million of its existing $1.5 billion multicurrency facility using proceeds from the new loan and cash flow.

Meanwhile the world's third largest cement maker said it expects revenues close to $7.5 billion and free cash flow to reach $1.35 billion this year. The company expects its EBITDA to be $2.35 billion, an increase of 11% over 2003.

"Consistent with our preference towards de-leveraging in the short term until attractive investment opportunities arise, we will continue to strengthen our capital structure during the second half of 2004, which would enable us to achieve a two times leverage ratio by the end of the year," said Lorenzo Zambrano, chief executive officer, in a news release.

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