About Us - Press Release - CEMEX completes MXN$2.2 billion securitization of accounts receivables
July 16, 2009
CEMEX, S.A.B. de C.V. (NYSE: CX) announced today that it has successfully raised MXN$2.2 billion (approximately US$160 million), through the securitization of accounts receivables of the Company’s CEMEX Mexico and CEMEX Concretos units.
To fund the transaction, a trust (at HSBC Mexico) issued receivables-backed bonds maturing on December 29, 2011. This transaction does not represent new debt for CEMEX as it is a sale of receivables on a non-recourse basis.
The bonds were priced at a spread of 250bps over the 28-day TIIE interbank rate and were assigned an “mxAAA” rating by Standard & Poor's and “HRAAA” by HR Ratings. The issuance was oversubscribed 1.3 times.
Proceeds from the securitization of these accounts receivables will reduce our working capital investment needs.
For this issuance, Ixe Casa de Bolsa served as underwriter and Finacity Corporation as bond administrator.
The transaction underscores CEMEX’s ability to tap long-term capital markets and the progress it is making as part of the Company’s effort to regain financial flexibility through strategic initiatives, including:
- Divestment of non strategic assets
- Implementation of US$900 million in recurrent cost savings
- Rationalization of capital expenditures; and
- Reduction of its total debt, and improvement of its debt profile
CEMEX is a global building materials company that provides high-quality products and reliable service to customers and communities in more than 50 countries throughout the world. CEMEX has a rich history of improving the well-being of those it serves through its efforts to pursue innovative industry solutions and efficiency advancements and to promote a sustainable future. For more information, visit www.cemex.com.
This press release contains forward-looking statements and information that are necessarily subject to risks, uncertainties, and assumptions. Many factors could cause the actual results, performance, or achievements of CEMEX to be materially different from those expressed or implied in this release, including, among others, changes in general economic, political, governmental and business conditions globally and in the countries in which CEMEX does business, changes in interest rates, changes in inflation rates, changes in exchange rates, the level of construction generally, changes in cement demand and prices, changes in raw material and energy prices, changes in businessstrategy, and various other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein.