Cemex SAB de CV (ADR) (NYSE:CX) reported that it has priced €650 million of its 2.75% Senior Secured Notes payable in 2024. The Notes will have interest at a yearly rate of 2.75% and mature in December 2024. These Notes will be released at a price of 100% of face value and also will be callable starting on December 5, 2020. The completion of the offering is anticipated to happen on December 5, 2017, depending upon satisfaction of customary closing guidelines.
Cemex plans to use the net proceeds from the respective Notes offering to support the redemption of a part of or all of U.S.$610.660 million outstanding aggregate principal sum of the 6.5% Senior Secured Notes payable in 2019 issued by company on August 12, 2013 and/or €400 million outstanding aggregate principal sum of the 4.75% Senior Secured Notes payable in 2022 issued by Cemex on September 11, 2014. The remainder, if any, will be used for general corporate purposes, counting to retire other indebtedness, all as per the company’s facilities deal, dated as of July 19, 2017, entered into with numerous financial institutions.
Awaiting such application, proceeds may even be applied to temporarily lower sum due under the revolving credit facility of the short-term bilateral facilities or 2017 Credit Agreement. These “Notes” will share in the security pledged for the advantage of the lenders under the Credit Agreement as well as other secured obligations with the advantage of such collateral, and will be assured by Cemex México, S.A. de C.V., Empresas Tolteca de México, S.A. de C.V., CEMEX Concretos, S.A. de C.V., CEMEX España, S.A., New Sunward Holding B.V., CEMEX Finance LLC, Cemex Asia B.V., Cemex Egyptian Investments B.V., CEMEX Corp., Cemex Research Group AG, CEMEX UK and CEMEX France Gestion (S.A.S.).
In the last trading session, the stock price of Cemex traded in a narrow range and closed flat at $7.49.