Cemex 2013 Annual Report Download - page 149
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Please find page 149 of the 2013 Cemex annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Notes to the financial statements
Pursuant to the Exchange Offer, participating creditors representing approximately 92.7% of the aggregate principal amount of debt
outstandingundertheexistingFinancingAgreementagreedexchangetheirexistingloansandprivateplacementnotesandtoreceiveinplace
thereof:a)approximatelyUS$6,155inaggregateprincipalamountofNewLoanswithaninitialinterestrateofLIBORplus525bps(subject
todecreasedependingoncertainprepayments),andnewUSPPNoteswithaninitialinterestrateof9.66%(subjecttodecreasedepending
oncertainprepayments),issuedpursuanttoanewagreement(the“FacilitiesAgreement”)datedasofSeptember17,2012,andwithanal
maturityonFebruary14,2017,andanexchangefeeof80bpscalculatedontheamountoftheirexistingexposuresundertheFinancing
AgreementthatwereexchangedandforwhichNewLoansorNewUSPPNoteswereissuedinplacethereof;andb)US$500oftheSeptember
2012Notes,issuedpursuanttoanindenturedatedasofSeptember17,2012.ApproximatelyUS$525aggregateprincipalamountofloans
andU.S.DollarprivateplacementnotesremainedoutstandingaftertheExchangeOfferundertheexistingFinancingAgreement,asamended,
aftertheExchangeOffer.Consideringthattherelevanteconomictermsofthenewdebtinstrumentsarenotsubstantiallydifferentfrom
thoseoftheoriginalloansandprivateplacements,theaforementionedexchangeofdebtaspartoftherenancingprocessdidnotresultin
theextinguishmentoftheoriginalnancialliabilitiesunderIFRS;therefore,therewerenoeffectsinprotorloss.CEMEXadjustedthecarrying
amountofthenancialliabilityforapproximatelyUS$116inrelationtothefeesandcostincurredduringtherenancingprocess,andthose
costs,togetherwithanyremainingcostsrelativetotheFinancingAgreementwillbeamortizedovertheremainingtermoftheFacilities
Agreement.AsofDecember31,2012,theaggregateprincipalamountofloansandU.S.dollarprivateplacementnotesundertheamended
FinancingAgreementwasUS$55($707),withanalmaturityonFebruary14,2014.ThisamountwasrepaidinMarch2013withproceeds
fromtheissuanceoftheMarch2019Notes.
TheFacilitiesAgreementrequiredCEMEXtomakethefollowingamortizationpayments:(i)US$500onFebruary14,2014,(ii)US$250
onJune30,2016,and(iii)US$250onDecember31,2016.TheFacilitiesAgreementalsoprovidesthatCEMEXmust:(a)repayatleast
US$1,000oftheindebtedness undertheFacilitiesAgreementonor priortoMarch 31,2013(or adatefallingnomorethan 90days
thereafter,ifagreedtobytwothirdsoftheparticipatingcreditorsundertheFacilitiesAgreement),orthematuritydateoftheindebtedness
undertheFacilitiesAgreementwillbecomedueonFebruary14,2014;(b)onorbeforeMarch5,2014,incaseCEMEXdoesnotredeem,
purchase,repurchase,renanceorextendthematuritydateof100%ofthenotesissuedbyCEMEXFinanceEuropeB.V.andguaranteedby
CEMEXEspañatoamaturitydatefallingafterDecember31,2017,orthematuritydateoftheindebtednessundertheFacilitiesAgreement
willbecomeMarch5,2014;(c)onorbeforeMarch15,2015,incaseCEMEXdoesnotredeem,convertintoequity,purchase,repurchase,
renanceorextendthematuritydateof100%ofthe2015ConvertibleSubordinatedNotestoamaturitydatefallingafterDecember31,
2017,orthematuritydateoftheindebtednessundertheFacilitiesAgreementwillbecomeMarch15,2015;(d)onorbeforeSeptember
30,2015,incaseCEMEXdoesnotredeemorextendthematuritydateof100%oftheApril2011Notestoamaturitydatefallingafter
December31,2017,orthematuritydateoftheindebtednessundertheFacilitiesAgreementwillbecomeSeptember30,2015;(e)onor
beforeMarch15,2016,incaseCEMEXdoesnotredeem,convertintoequity,purchase,repurchase,renanceorextendthematuritydate
of100%ofthe2016ConvertibleSubordinatedNotestoamaturitydatefallingafterDecember31,2017,orthematuritydateofthe
indebtednessundertheFacilitiesAgreementwillbecomeMarch15,2016;and(f)onorbeforeDecember14,2016,incaseCEMEXdoes
notredeemorextendthematuritydateof100%oftheDecember2009NotestoamaturitydatefallingafterDecember31,2017,orthe
maturitydateoftheindebtednessundertheFacilitiesAgreementwillbecomeDecember14,2016.
FortheinitialUS$1,000repayment,atitssolediscretion,CEMEXhadtherightto:a)sellminoritystakesinCEMEX’soperations;b)sell
selectedassetsintheUnitedStates;c)sellselectedassetsinEurope;and/ord)saleofothernon-coreassets.IfduringtheFacilitiesAgreement
termCEMEXpaysdownUS$1,500andUS$2,000ofaggregateprincipalamountundertheFacilitiesAgreement,theinterestrateunderthe
outstandingamountoftheNewNoteswouldbereducedtoLIBORplus500bpsandLIBORplus450bps,respectively,andintheNewUSPP
Noteswouldbereducedto9.41%and8.91%,respectively.
AsofDecember31,2012,CEMEXachievedtheUS$1,000repaymentmilestoneofMarch2013,andthedebtamortizationrequirements
undertheFacilitiesAgreementthroughandincludingtheamortizationonDecember15,2016;withUS$4,187remainingoutstandingwith
analmaturityinFebruary2017.Asaresultoftheprepayments,theinterestrateontheNewLoansundertheFacilitiesAgreementwas
reducedtoLIBORplus450bpsandontheNewUSPPNoteswasreducedto8.91%.
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