Cemex S.A.B. de C.V. (“Cemex”) announced today that it has successfully refinanced its US$3.0 billion syndicated credit agreement, extending the maturity to 2028.
The refinanced Credit Agreement consists of a US$1.0 billion 5-year amortizing Term Loan, and a $2.0 billion 5-year committed Revolving Credit Facility. This represents a reduction of US$500 million in the Term Loan and an increase of US$250 million in the revolver from the prior facility. The signing of the Credit Agreement is an integral part of a comprehensive financing plan designed to increase liquidity and flexibility.
“We are pleased that in a volatile market where yields have been rising, we were able to maintain terms and conditions, including the pricing grid established in 2021, as well as increase our committed revolver,” said Cemex CFO Maher Al-Haffar. “We now have a flatter debt maturity profile, with no significant maturities in any year.”
The Credit Agreement, denominated exclusively in US Dollars, maintains its previous interest rate margin and financial covenants, consistent with an investment-grade capital structure, that provide for a maximum leverage ratio of 3.75x throughout the life of the loan and a minimum interest coverage ratio of 2.75x.
The Credit Agreement is part of Cemex’s recently updated Sustainability-linked Financing Framework, which is aligned to the company’s Future in Action strategy and roadmap and its ultimate vision of a carbon-neutral economy. The annual performance with respect to the three metrics referenced in the Framework may result in a total adjustment of the interest rate margin of plus or minus five basis points, in line with other sustainability-linked loans from investment-grade rated borrowers.
The Joint Bookrunners and Joint Lead Arrangers under the 2023 Credit Agreement are Citigroup Global Markets Inc., BofA Securities Inc., BNP Paribas, JPMorgan Chase Bank, N.A., Crédit Agricole Corporate and Investment Bank, ING Capital LLC, BBVA México S.A., and Mizuho Bank Ltd. The Sustainability Structuring Agent for the 2023 Credit Agreement is ING Capital LLC. The Credit Agreement maintains its guarantor structure, which consists only of Cemex Concretos, S.A. de C.V., Cemex Operaciones México, S.A. de C.V., Cemex Innovation Holding Ltd. and Cemex Corp.
Cemex is a global construction materials company that is building a better future through sustainable products and solutions. Cemex is committed to achieving carbon neutrality through relentless innovation and industry-leading research and development. Cemex is at the forefront of the circular economy in the construction value chain and is pioneering ways to increase the use of waste and residues as alternative raw materials and fuels in its operations with the help of new technologies. Cemex offers cement, ready-mix concrete, aggregates, and urbanization solutions in growing markets around the world, powered by a multinational workforce focused on providing a superior customer experience enabled by digital technologies. For more information, please visit: www.cemex.com