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Friday, October 5, 2012

CEMEX announces pricing of U.S.$1.5 billion in senior secured notes; Expects third quarter 2012 operating EBITDA to grow by about 9%

CEMEX, S.A.B. de C.V. (“CEMEX”) (NYSE: CX) announced yesterday the pricing of U.S.$1.5 billion aggregate principal amount of senior secured notes (the “Notes”) denominated in U.S. dollars.
The Notes to be issued by CEMEX Finance LLC will bear interest at an annual rate of 9.375% and mature in 2022. The Notes will be issued at par and will be callable commencing on their 5th anniversary. The closing of the offering is expected to occur on October 12, 2012, subject to satisfaction of customary closing conditions.
CEMEX intends to use the net proceeds from the offering to prepay principal outstanding under CEMEX’s Facilities Agreement, dated September 17, 2012, thereby allowing CEMEX to satisfy the March 31, 2013 U.S.$1.0 billion prepayment milestone and the February 14, 2014 U.S.$500 million amortization payment thereunder. These payments will reduce the interest rate on the Facilities Agreement debt by 25 basis points.

The Notes will share in the collateral pledged for the benefit of the lenders under the Facilities Agreement and other secured obligations having the benefit of such collateral, and will be guaranteed by CEMEX, CEMEX México, S.A. de C.V., CEMEX España, S.A., CEMEX Corp., CEMEX Concretos, S.A. de C.V., Empresas Tolteca de México, S.A. de C.V., New Sunward Holding B.V., Cemex Research Group AG, Cemex Shipping B.V., Cemex Asia B.V., CEMEX France Gestion (S.A.S.), CEMEX UK and Cemex Egyptian Investments B.V.
CEMEX also announced, in connection with a proposed private placement of debt securities, it anticipates disclosing to prospective purchasers certain preliminary financial information regarding its financial results for the quarter ended September 30, 2012, which results CEMEX expects to report later in October. Based on actual results for the months of July and August 2012 and preliminary estimates for the month of September 2012, CEMEX currently expects to report the following headline figures with respect to its 2012 third quarter results, on a consolidated basis:
For the third quarter 2012, as compared to the third quarter of 2011, net sales, expressed in U.S. Dollar terms, are expected to decline by approximately 2%; net sales, on a like-to-like basis (adjusting for currency fluctuations between the two periods), are expected to grow by approximately 3%; operating EBITDA, expressed in U.S. Dollar terms, is expected to grow by about 9%; and operating EBITDA, on a like-to-like basis (adjusting for currency fluctuations between the two periods), is expected to grow by approximately 13%. This expected performance would represent an improvement in operating EBITDA margin of approximately 1.8 percentage points compared to the third quarter of 2011. As such, net sales performance, expressed in U.S. Dollar terms, operating EBITDA performance, expressed in U.S. Dollar terms, and operating EBITDA margin performance are expected to follow a similar trend compared to that observed during the first half of 2012. CEMEX also expects that its total debt (including convertible notes and capital leases) plus perpetual notes, expressed in U.S. Dollar terms, will remain relatively flat compared to the balance reported as of June 30, 2012.
Source: www.cemex.com