Cemex completes refinancing of $15 billion bank and placement debt

By Sara Rosenberg

New York, Aug. 14 - Cemex SAB de CV refinanced about $15 billion of bank debt and private placement notes, extending the maturities so that the final maturity is Feb. 14, 2014, according to a news release.

Under the refinancing, bank debt holders are now receiving pricing of Libor plus 450 basis points and financial covenants were revised.

Security is stock in certain subsidiaries of the company.

Private placement creditors that represent $895 million of the total refinancing package are now getting fixed-rate pricing of 8.91%.

The company plans to meet the amortization requirements on the debt prior to final maturity using funds from a variety of sources, including free cash flow from operations and net cash proceeds from non-core asset sales as well as capital market transactions.

"We are pleased with the outcome of this refinancing, as it significantly improves our debt maturity profile while providing the company with greater flexibility and the ability to diversify sources of financing," said Lorenzo H. Zambrano, chairman and chief executive officer, in the release.

"As a result, Cemex is in a much stronger financial position to regain our financial flexibility and, eventually, our investment-grade capital structure."

Cemex is a Mexico-based building materials company.

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