About Us - Press Release - CEMEX prices US$500 million reopening of 9.5% notes due 2016
January 13, 2010
CEMEX, S.A.B. de C.V. (NYSE: CX), announced today the pricing of a US$500 million reopening of its 9.5% notes due 2016, which were originally issued on December 14, 2009 in the amount of US$1,250 million. The additional US$500 million of notes will be issued at a price of US$105.25 per US$100 principal amount plus accrued interest from December 14, 2009 and will have a yield to maturity of 8.477%.
The closing of the offering is expected to occur on January 19, 2010, subject to satisfaction of customary closing conditions.
Of the net proceeds from the offering, US$411 million will be used to prepay principal outstanding under CEMEX’s Financing Agreement completed on August 14, 2009. The remaining proceeds will increase cash balances and be used for general corporate purposes, which may include additional repayments of indebtedness, including indebtedness under the Financing Agreement. This prepayment is expected to result in accumulated prepayments under the Financing Agreement in excess of the first financial milestone of US$4.8 billion, thereby allowing CEMEX to maintain the current applicable margin under the Financing Agreement until at least December 2011.
The notes will share in the collateral pledged to the lenders under the Financing Agreement and will be guaranteed by CEMEX and the subsidiaries which have provided guarantees under the Financing Agreement.
The Notes and the guarantees thereof have not been and will not be registered under 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.
This press release contains forward-looking statements and information that are necessarily subject to risks, uncertainties, and assumptions. No assurance can be given that the offering described herein will be consummated or as to the terms of any such offering. CEMEX assumes no obligation to update or correct the information contained in this press release.