Cemex 2013 Annual Report Download - page 40

CEMEX Finance LLC tendered their Notes at or prior to the
early tender deadline of 5:00 p.m., New York City time,
on August 16, 2013 (the “Early Tender Date”), pursuant
to CEMEX’s previously announced cash tender offer to
purchase up to US$925 million (the “Maximum Tender
Amount”) of the outstanding Notes. The cash tender offer
was made pursuant to the offer to purchase dated August
5, 2013, and the related letter of transmittal.
Because Notes in excess of the Maximum Tender Amount
were validly tendered in the tender offer on or prior to the
Early Tender Date, CEMEX accepted US$925 million of
such tendered Notes for purchase and paid holders thereof
on a pro rata basis according to the pro-ration procedures
described in the offer to purchase. The early settlement
date on which CEMEX made payment for such Notes was
August 19, 2013.
CEMEX to expand capacity of Texas cement plant
On May 30, 2013, CEMEX announced that it is planning
to expand the production capacity of its Odessa, Texas,
cement plant in the U.S. by 345,000 metric tons to nearly
900,000 metric tons per year to keep pace with rapidly
growing demand in its west Texas market led mainly by
the oil and gas industry. By leveraging existing assets and
producing value-added products, the company expects to
achieve strong returns on its investment.
The demand for specialty cement products used in well
construction is growing as a result of the use of more
efficient extraction technologies, such as horizontal drilling
and hydraulic fracturing. Oil wells using this technology
typically reach depths of thousands of feet. Specialty well
cement is required for the complex application and ex-
treme conditions to which these wells are exposed.
CEMEX has reduced total debt
plus perpetual securities by
approximately US$4.8 billion
since 2009.
CEMEX issues US$1.0 billion in senior secured notes
On August 5, 2013, CEMEX issued US$1.0 billion of senior
secured notes (the “Notes”) denominated in U.S. dollars.
The Notes bear interest at an annual rate of 6.5% and will
mature on December 10, 2019. The Notes were issued at
par and are callable commencing on December 10, 2017.
The closing of the offering occurred on August 12, 2013.
CEMEX used the approximately US$995 million of net
proceeds from the offering to purchase US$925 million
of the 9.50% Senior Secured Notes due 2016 (the “2016
Notes”) issued by CEMEX Finance LLC, and the remainder
for general corporate purposes, including the repayment of
other indebtedness.
The Notes share in the collateral pledged for the benefit
of the lenders under CEMEX’s Facilities Agreement, 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 Investments B.V., Ce-
mex Egyptian Investments II B.V., CEMEX France Gestion
(S.A.S.), Cemex Research Group AG, Cemex Shipping B.V.,
and CEMEX UK.
The expansion will utilize state-of-the-art production
technology resulting in higher fuel efficiency and improved
productivity. The expansion will also include an improved
higher capacity load out system, allowing for a more effi-
cient truck loading process to accommodate the region’s
growing demand for cement.
Panama Metro, Panama
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