CEMEX Announces Pricing of U.S. $800 Million in Floating Rate Notes
March 29 2011 - 11:00PM
Business Wire
CEMEX, S.A.B. de C.V. (CEMEX) (NYSE: CX), announced today the
pricing of U.S. $800 million aggregate principal amount of floating
rate senior secured notes (the “Notes”) denominated in U.S.
Dollars.
The Notes will mature on September 30, 2015, will pay interest
quarterly at three-month U.S. Dollar LIBOR plus 500 basis points,
and will be issued at a price of 99.001% of face value. The closing
of the offering is expected to occur on April 5, 2011, subject to
satisfaction of customary closing conditions.
CEMEX intends to use the net proceeds from the offering to
prepay principal outstanding under its Financing Agreement
completed on August 14, 2009, as amended. As a result of this
expected prepayment and, taking into account other prepayments,
CEMEX will have (i) addressed all maturities under the agreement
until December 2013, (ii) repaid approximately 50% of the original
balance outstanding under the agreement, significantly improving
CEMEX’s debt maturity profile, and (iii) repaid approximately 98%
of the total amount required to be repaid by December 31, 2011 to
reach the second milestone under the agreement, which would enable
CEMEX to avoid the remaining 50 basis points increase in the
agreement’s annual interest rate.
The Notes will share in the collateral pledged for the benefit
of the lenders under the Financing Agreement and other secured
obligations having the benefit of such collateral, and will be
guaranteed by CEMEX Mexico, S.A. de C.V., CEMEX España, S.A. and
New Sunward Holding B.V.
The Notes and the guarantees thereof have not been and will
not be registered under the U.S. Securities Act of 1933, as amended
(the "Securities Act"), or any state securities laws, and they may
not be offered or sold in the United States absent registration or
an applicable exemption from the registration requirements of the
Securities Act.
THE NOTES HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE
NATIONAL SECURITIES REGISTRY (REGISTRO NACIONAL DE VALORES)
MAINTAINED BY THE MEXICAN NATIONAL BANKING AND SECURITIES
COMMISSION (COMISIÓN NACIONAL BANCARIA Y DE VALORES, OR CNBV), AND
MAY NOT BE OFFERED OR SOLD PUBLICLY, OR OTHERWISE BE THE SUBJECT OF
BROKERAGE ACTIVITIES, IN MEXICO, EXCEPT THAT THE NOTES MAY BE
OFFERED IN MEXICO PURSUANT TO A PRIVATE PLACEMENT EXEMPTION SET
FORTH UNDER ARTICLE 8 OF THE MEXICAN SECURITIES MARKET LAW (LEY DEL
MERCADO DE VALORES), TO MEXICAN INSTITUTIONAL AND QUALIFIED
INVESTORS. UPON THE ISSUANCE OF THE NOTES, WE WILL NOTIFY THE CNBV
OF THE ISSUANCE OF THE NOTES, INCLUDING THE PRINCIPAL
CHARACTERISTICS OF THE NOTES AND THE OFFERING OF THE NOTES OUTSIDE
MEXICO. SUCH NOTICE WILL BE DELIVERED TO THE CNBV TO COMPLY WITH A
LEGAL REQUIREMENT AND FOR INFORMATION PURPOSES ONLY, AND THE
DELIVERY TO AND THE RECEIPT BY THE CNBV OF SUCH NOTICE DOES NOT
CONSTITUTE OR IMPLY ANY CERTIFICATION AS TO THE INVESTMENT QUALITY
OF THE NOTES OR OF OUR SOLVENCY, LIQUIDITY OR CREDIT QUALITY OR THE
ACCURACY OR COMPLETENESS OF THE INFORMATION SET FORTH HEREIN. THE
INFORMATION CONTAINED IN THE DOCUMENTS USED FOR THE OFFERING OF THE
NOTES IS THE EXCLUSIVE RESPONSIBILITY OF CEMEX AND HAS NOT BEEN
REVIEWED OR AUTHORIZED BY THE CNBV.
This press release contains forward-looking statements and
information that are necessarily subject to risks, uncertainties
and assumptions. Many factors could cause the actual results,
performance or achievements of CEMEX to be materially different
from those expressed or implied in this release, including, among
others, changes in general economic, political, governmental and
business conditions globally and in the countries in which CEMEX
does business, changes in interest rates, changes in inflation
rates, changes in exchange rates, the level of construction
generally, changes in cement demand and prices, changes in raw
material and energy prices, changes in business strategy and
various other factors. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described
herein. CEMEX assumes no obligation to update or correct the
information contained in this press release.
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