Cemex 2013 Annual Report Download - page 17

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Over the course of the year, we took proactive steps
to strengthen our capital structure, improve our debt
maturity profile, and regain our financial flexibility. In the
process, we lowered our interest expense, reduced our
refinancing risk, and enhanced our liquidity.
We continued to successfully access the global capital mar-
kets—issuing US$3.1 billion in four separate transactions:
US$600 million of 5.875% senior secured notes
issued in March and maturing in 2019. We used the net
proceeds from this offering to pay in full the remaining
US$55 million of debt under CEMEX’s 2009 Financing
Agreement, approximately €183 million of our 2014
Eurobonds, and the remainder for general corporate pur-
poses, including the repayment of other indebtedness.
US$1billion of 6.50% senior secured notes issued in
August and maturing in 2019. We used the net proceeds
from this offering to pay US$925 million of our 9.50%
senior secured notes due 2016.
US$1billion of 7.25% senior secured notes issued in
September and maturing in 2021, and
US$500 million of floating rate senior secured
notes, bearing interest at three-month LIBOR plus 4.75%,
maturing in 2018. We used the net proceeds from these
offerings to pay the remaining US$825 million of our
9.50% senior secured notes due 2016 and €220 million
of our 9.625% senior secured notes due 2017. In addi-
tion, we created a cash reserve to pay the outstanding
balance of our 2014 Eurobonds at their maturity. The pro
forma average life of our debt reflecting the payment of
these Eurobonds is 4.6 years.
These strategic transactions are expected to result in
annual cash interest savings of approximately US$55 mil-
lion. Moreover, we bolstered our liquidity, and as of today,
we do not have any significant maturities until 2015.
Proactively managing our
financial position
Average life of debt
(as of December 31)
1 Pro forma
4.6
5.0
3.8
3.9
4.1
09 10 11 12 131
US$3.1 in senior secured notes
issued in four separate
transactions during 2013
billion
[16]