Cemex issues $6.2 billion of new loans, notes in third quarter, 'comfortable' with liquidity

By Lisa Kerner

Charlotte, N.C., Oct. 15 - Cemex SAB de CV completed its August 2009 financing agreement during the third quarter 2012, issuing about $6.2 billion of new loans and private placement notes with a February 2017 maturity, Maher Al-Haffar, vice president of corporate communications and investor relations, said during Cemex's third-quarter earnings call on Monday.

The company also issued $500 million of 9½% senior secured notes due 2018 and has $525 million remaining under its original financing agreement, Al-Haffar said.

Earlier in the month, Cemex issued $1.5 billion of 9 3/8% senior secured notes due 2022, the proceeds of which will be sued to satisfy the $1 billion March 2013 prepayment milestone and the $500 million amortization due in February 2014 under the new facilities agreement.

Cemex will have no significant maturities until February 2014 following the prepayments, said Al-Haffar.

The company is "well-advanced in several tracks towards derisking" its balance sheet, according to Al-Haffar.

During the quarter, total debt plus perpetual securities increased by $14 million.

The company has $17.2 billion of consolidated debt, excluding perpetual securities, at quarter-end.

Cemex is "comfortable" with its liquidity of about $800 million in cash and temporary investments, said Al-Haffar.

Operating EBITDA increased by 9% to $730 million, or 13% on a like-to-like basis.

Free cash flow, not including maintenance capital expenditures for the quarter, was $204 million, compared with $102 million for the third quarter of 2011, executive vice president Fernando A. Gonzalez noted during the call.

Cemex is a Monterrey, Mexico-based building materials supplier and cement producer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.