About Us - Press Release - CEMEX announces successful execution of U.S.$1.15 billion multi-tranche term loan agreement
October 15, 2003
CEMEX, S.A. de C.V. (NYSE: CX) announced today that its Netherlands subsidiary, New Sunward Holding B.V., has executed a Multi-tranche Term Loan Agreement in an amount equivalent to U.S.$1.15 billion guaranteed by CEMEX, S.A. de C.V., CEMEX Mexico, S.A. de C.V. and Empresas Tolteca de Mexico, S.A. de C.V.
The Term Loan Agreement includes three different tranches denominated in euros, dollars and yen. The first tranche is a two-year euro denominated loan in the amount of €256,365,000. The second tranche is a three-year dollar denominated loan in the amount of U.S.$550,000,000. The third tranche is a three-year yen denominated loan in the amount of ?32,688,000,000. The second and third tranches can be extended for an additional period of six months, subject to certain provisions in the agreement.
Rodrigo Treviño, Chief Financial Officer, said: "This transaction represents yet another important step towards a simpler capital structure, allowing us to reduce the use of currency derivatives by borrowing directly in yen. The proceeds will let us anticipate the refinancing of the outstanding U.S.$400 million under our Revolving Credit Facility, and prepay the remaining U.S.$650 million balance of the preferred equity issued in connection with our acquisition of Southdown in 2000, representing a significant portion of our refinancing needs for 2004."
The Joint Bookrunners of this transaction are Citigroup Global Markets, Inc. and J.P. Morgan Securities, Inc. The Syndication Agent is Credit Agricole Indosuez/Credit Lyonnais. The Administrative Agent is Citibank, N.A.
The Mandated Lead Arrangers are Citibank, N.A., ABN AMRO Bank N.V., BNP Paribas, Citigroup Global Markets, Inc., Credit Agricole Indosuez/Credit Lyonnais, J.P. Morgan Securities and Santander Central Hispano.
CEMEX is a leading global producer and marketer of cement and ready-mix products, with operations concentrated in the world's most dynamic cement markets across four continents. CEMEX combines a deep knowledge of the local markets with its global network and information technology systems to provide world-class products and services to its customers, from individual homebuilders to large industrial contractors. For more information, visit www.cemex.com.