CEMEX closes committed revolving credit facility
May 16, 1997
CEMEX S.A. de C.V. today announced the closing of a committed revolving credit facility for US$600 million with a three year maturity on drawdowns. This Facility is available to refinance short-term debt and therefore does not represent incremental debt for the company.
Rodrigo Treviño, Chief Financial Officer of CEMEX, said that this credit facility will give the company additional flexibility to access the debt capital markets at the moment when conditions allow for longer maturities and lower financing cost. This additional liquidity source strengthens the financial position of CEMEX.
The transaction was jointly arranged and underwritten by Bankers Trust, Citibank, Chase Manhattan and J.P. Morgan. It was broadly syndicated to a group of European, Asian and North American commercial and investment banks, who oversubscribed the offering. The commitment fee will be 37.5 basis points per annum and the interest rate during the first year for drawn amounts is Libor plus 125 basis points.
CEMEX has operations in 22 countries and commercial relations with 60 nations around the world, with production capacity of approximately 50 million tons.