Cemex 2013 Annual Report Download - page 39

of the outstanding 9.625% Senior Secured Notes due
2017 (the “2017 Notes”), issued by CEMEX Finance
LLC, to repay at maturity the 4.75% Notes due 2014,
issued by CEMEX Finance Europe B.V., and/or to repay
its other indebtedness.
The Additional Floating Notes and the Original Notes (col-
lectively, the “Notes”) share in the collateral pledged for
the benefit of the lenders under CEMEX’s Facilities Agree-
ment, dated as of September 17, 2012, and other secured
obligations having the benefit of such collateral, and
are guaranteed by CEMEX México, S.A. de C.V., CEMEX
Concretos, S.A. de C.V., Empresas Tolteca de México, S.A.
de C.V., New Sunward Holding B.V., CEMEX España, S.A.,
Cemex Asia B.V., CEMEX Corp., Cemex Egyptian Invest-
ments B.V., Cemex Egyptian Investments II B.V., CEMEX
France Gestion (S.A.S.), Cemex Research Group AG, Cemex
Shipping B.V. and CEMEX UK.
CEMEX to improve its portfolio in Europe
On August 28, 2013, CEMEX announced that it reached an
agreement with Holcim to conduct a series of transactions
that will improve CEMEX’s strategic footprint in Europe.
CEMEX will acquire all of Holcim’s assets in the Czech
Republic, which include one cement plant (cement capacity
of 1.1 million tons, clinker capacity of 0.9 million tons),
four aggregates quarries, and 17 ready-mix concrete
plants. The Czech Republic is a market with a strong econ-
omy and solid prospects, and we expect that acquiring
these assets should improve CEMEX’s operations in the
country and in Central Europe.
CEMEX will divest its assets in the western part of Ger-
many to Holcim, which include one cement plant and two
grinding mills (total cement capacity of 2.5 million tons,
clinker capacity of 0.9 million tons), one slag granulator,
22 aggregates quarries, and 79 ready-mix concrete plants.
The German market is an attractive one, and CEMEX will
still be present in the eastern, northern, and southern part
of the country with an important footprint.
In Spain, CEMEX and Holcim will combine all of their
cement, ready-mix concrete, and aggregates operations.
CEMEX will have a 75% controlling interest over the com-
bined operational assets in this country. This transaction
will allow CEMEX to better serve the market, which should
translate into higher value creation in that country.
As part of these transactions, Holcim will pay CEMEX €70
million in cash. Additionally, the transactions are expected
to generate synergies that will result in a recurring im-
provement in CEMEX’s EBITDA of about US$20 million to
US$30 million, beginning to be realized in 2014.
These transactions are not final. They are subject to the
fulfillment of various conditions precedent, mainly con-
firmatory due diligence and approvals from competition
authorities, among others.
CEMEX completes early settlement of tender offer for
purchase of US$925 million of 9.50% notes due 2016
On August 19, 2013, CEMEX announced that holders of
approximately US$1.33 billion of the outstanding 9.50%
Senior Secured Notes due 2016 (the “Notes”) issued by
Wind Farm, Puerto Rico
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