Cemex 2012 Annual Report Download - page 33

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CEMEX successfully completes renancing of 2009
Financing Agreement
On September 17, 2012, CEMEX successfully com-
pleted the refinancing of its Financing Agreement,
dated as of August 14, 2009, as amended. Pursuant
to the refinancing, participating creditors representing
approximately 92.7% of the aggregate principal amount
outstanding under the existing Financing Agreement
agreed to extinguish their existing loans and private
placement notes and to receive in place thereof:
• Approximately US$6.155 billion in aggregate princi-
pal amount of new loans and new U.S. dollar private
placement notes issued pursuant to a New Facilities
Agreement and a New Note Purchase Agreement,
both dated as of September 17, 2012; and
• US$500 million of new 9.5% senior secured notes
due 2018, issued pursuant to an indenture dated as
of September 17, 2012, which notes were delivered
by the exchange agent to recipients.
As a result of the refinancing, the principal terms of the
New Facilities Agreement, with a final maturity of Febru-
ary 14, 2017, became effective on September 17, 2012.
Also, approximately US$525 million aggregate principal
amount of loans and U.S. dollar private placement notes
remain outstanding under the original Financing Agree-
ment, as amended and restated pursuant to the terms of
the exchange offer, and the Note Purchase Agreement,
each with a final maturity of February 14, 2014.
CEMEX signs strategic agreement with IBM to provide
business process outsourcing and IT services
On July 30, 2012, CEMEX and IBM executed a 10-year
strategic agreement through which IBM will deliver
world-class business process and information technolo-
gy services. Additionally, IBM will provide CEMEX with
business consultant services to detect and drive sus-
tainable improvements in profitability, using the entire
breadth of IBM’s capabilities, including R&D expertise.
This agreement is expected to generate CEMEX savings
of close to US$1 billion during the life of the contract.
Additionally, it will improve the quality of the services
provided to CEMEX; enhance business agility and scal-
ability; maximize internal eciencies; and allow the
company to better serve its customers.
The 10-year services contract awarded to IBM is worth
just over US$1 billion, and will include: finance and
accounting and human resource back-oce services, as
well as IT infrastructure, application development, and
maintenance services. Together, IBM and CEMEX will
implement state-of-the-art business processes, practic-
es, and information systems developed by IBM. CEMEX
will also leverage IBM’s worldwide expertise to acceler-
ate and replicate innovative practices in CEMEX busi-
ness units to achieve better customer service, increase
process quality, and sustain cost improvements.
CEMEX successfully completes global integration of
new business platform
On July 12, 2012, CEMEX announced its successful
global integration of the most advanced enterprise
platform based on SAP. The deployment was achieved
in record time and cost across all its operations in over
50 countries. With this milestone, CEMEX concluded
the utilization of its previous platform, JD Edwards.
1.5 million
US$65
metric tons of increased grinding capacity
at our APO plant in the Philippines expected
to be operational by first quarter 2014
million is the approximate investment
in this expansion project
APO Cement Plant, Philippines
33
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