CEMEX SAB, the largest cement maker in the Americas, yesterday took its proposal for restructuring US$14.5 billion (Euros 10.3 billion) of bank debt to the Spanish capital Madrid yesterday after presenting the offer to lenders in New York.
CEMEX presents plan to refinance bank debt
CEMEX SAB, the largest cement maker in the Americas, yesterday took its proposal for restructuring US$14.5 billion (Euros 10.3 billion) of bank debt to the Spanish capital Madrid yesterday after presenting the offer to lenders in New York.
Monterrey, Mexico-based CEMEX said it continues to make significant progress with its core banks who represent a majority of the its outstanding bank debt.
With worldwide operations, including many in Europe, CEMEX said the key component of the proposed refinancing plan is a revised maturity schedule on a new facility encompassing the $14.5 billion in bank debt that would run through to February 2014, a revised schedule that would shift 2009-2011 maturities substantially into the future.
Combined with the divestment of non-strategic assets, ongoing cost-reduction initiatives and the ability to access the capital markets, CEMEX expects that, when completed, the refinancing will contribute to a significant strengthening of the Company's capital structure.
“CEMEX is working to finalise the terms of a comprehensive refinancing plan with all our banks that would provide the company with greater flexibility and the ability to diversify sources of financing,” said Lorenzo Zambrano, chairman and CEO of CEMEX.
“Having announced the US$1.6 billion sale of our Australian assets [to Holcim Ltd] along with sales of other non-strategic assets targeted for divestment, we have largely met our previously-stated goals for divestiture for 2009. We have also implemented a significant cost savings program, adjusting our operations to current market conditions. I am confident that the strategy we are pursuing is positioning CEMEX for a successful future.”
It is understood that the company has struggled amid the global credit crisis to refinance short-term loans it took out to pay for the $14.2 billion purchase of Rinker Group in 2007. The recession in the US, the company’s largest market, has eroded revenue.
Details of the refinancing plan will be provided when the agreement is finalised.
