About Us - Press Release - CEMEX presents plan to refinance bank debt
June 30, 2009
CEMEX, S.A.B. de C.V. (NYSE: CX), announced today that it continues to make significant progress with its core banks who represent a majority of the Company's outstanding bank debt. As a result of these discussions, CEMEX is presenting its proposal to the Company's full syndicate of banks in two meetings, the first of which was held in New York on June 29 with the second scheduled for Madrid on July 1.
The key component of the proposed refinancing plan is a revised maturity schedule on a new facility encompassing U.S. $14.5 billion in bank debt that would run through February 2014. This revised schedule would shift 2009-2011 maturities substantially into the future.
Combined with the divestment of non-strategic assets, ongoing cost-reduction initiatives and the ability to access the capital markets, CEMEX expects that, when completed, the refinancing will contribute to a significant strengthening of the Company's capital structure.
"CEMEX is working to finalize the terms of a comprehensive refinancing plan with all our banks that would provide the Company with greater flexibility and the ability to diversify sources of financing," said Lorenzo Zambrano, Chairman and CEO of CEMEX.
"Having announced the US$1.6 billion sale of our Australian assets along with sales of other non-strategic assets targeted for divestment, we have largely met our previously-stated goals for divestiture for 2009. We have also implemented a significant cost savings program, adjusting our operations to current market conditions. I am confident that the strategy we are pursuing is positioning CEMEX for a successful future."
Details of the refinancing plan will be provided when the agreement is finalized.
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 business strategy, 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. CEMEX assumes no obligation to update or correct the information contained in this press release.