Cemex 2013 Annual Report Download - page 83

Notes to the consolidated financial statements
Relevant debt transactions during 2013, 2012 and 2011
OnDecember14,2013,subsequenttothetenderoffersofSeptember25describedbelow,CEMEXS.A.B.deC.V.completedtheredemption
ofalloftheoutstandingUS$355principalamountof9.50%SeniorSecuredNotesdue2016(the“2016Notes”)andtheredemptionof
approximately€39oftheoutstanding€169aggregateprincipalamountof9.625%SeniorSecuredNotesdue2017(the“2017Notes”),
bothissuedbyCEMEXFinanceLLC,itsindirectsubsidiary.CEMEXredeemedthe2016Notesatapriceof1,047.50dollarsper1thousand
dollarsprincipalamountof2016Notesredeemed,orapproximatelyUS$372intotal,andredeemedthe2017Notesatapriceof1,048.125
euros per 1 thousand euros principal amount of 2017 Notes redeemed,or approximately €41 in total. CEMEX did not incur any early
terminationpenaltiesinconnectionwiththeredemptionofthe2016Notesor2017Notesbeyondthepremiumreectedintheredemption
pricedescribedabove.
OnSeptember25,2013,inconnectionwiththeproceedsobtainedfromtheissuanceofUS$1.5billioncombinedaggregateprincipalamount
oftheNewNotesdescribedbelow,CEMEXcommencedindependenttenderofferstopurchaseanyandallofUS$825aggregateprincipal
amountoutstandingofthe2016Notesandtopurchaseupto€150ofthe€350aggregateprincipalamountoutstandingofthe2017Notes.
Theremainderwasusedforgeneralcorporatepurposes,including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capamountonthe2017NotestenderofferwasfurtherincreasedonOctober
3,2013to€220,whileallothertermsandconditionsoftheofferremainedunchanged.ThetenderoffersexpiredonOctober23,2013
andresultedinthepurchaseofapproximatelyUS$470principalamountof2016Notesandapproximately€181principalamountof2017
Notes.Holderswhose2016Notesand2017Notestenderedwereacceptedforpurchasedreceivedabasecompensationof32.50dollars
per1thousanddollarsprincipalamountof2016Notesand33.50eurosper1thousandeurosprincipalamountof2017Notes,respectively,
ofwhich,thoseholdersofthe2016Notesandthe2017Notesthattenderedatorpriorto5:00p.m.,NewYorkCitytime,onOctober8,
2013,receivedanadditionalearlytenderpaymentof30dollarsper1thousanddollarsprincipalamountof2016Notesandof30eurosper1
thousandeurosprincipalamountof2017Notes,respectively.Asaresultofthetenderoffersofthe2016Notesandthe2017Notes,CEMEX
paidacombinedamountofpremiums,includingfeesandcostsincurredduringthetenderoffersofapproximatelyUS$45($591),ofwhich,
approximatelyUS$32($418)associatedwiththeportionofthe2016Notesandthe2017Notesthatwereextinguishedinaccordance
withIFRSwererecognizedinthestatementofoperationsin2013aspartofthenancialexpense,net.Moreover,proportionalfeesand
costsrelatedtotheissuanceofthe2016Notesandthe2017NotesforapproximatelyUS$1($14)thatwerependingforamortizationwere
recognizedinthestatementofoperationsin2013aspartofnancialexpense.Inaddition,approximatelyUS$13($173),correspondingto
theportionofthepremiumofthe2016NotestenderedthatweretreatedasarenancingunderIFRSbyconsideringthat:a)therelevant
economictermsoftheFixedRateNotesandthe2016Noteswerenotsubstantiallydifferent;andb)nalholdersoftheFixedRateNotes
werethesameofsuchportionofthe2016Notes,adjustedthecarryingamountoftheFixedRateNotes,andsuchamount,togetherwith
anyremainingcostspendingforamortizationrelativetothe2016Notesandthe2017Noteswillbeamortizedovertheremainingtermof
eachinstrument.Givingeffecttotheresultsofthetenderoffers,theprincipalamountstheoutstandingofthe2016Notesandthe2017
NoteswereapproximatelyUS$355and€169(US$232),respectively.
OnSeptember25,2013,CEMEXannouncedtheissuanceofUS$1.0billionof7.25%SeniorSecuredNotesdueinJanuary2021(the“Fixed
RateNotes”)andUS$400ofFloatingRateSeniorSecuredNotesdueinOctober2018(the“FloatingRateNotes”and,togetherwiththeFixed
RateNotes,the“NewNotes”)denominatedinU.S.dollars.OnSeptember27,CEMEXannouncedtheissuanceofUS$100additionalFloating
RateNotes,whicharealsopartoftheNewNotes.TheFixedRateNoteswereissuedatparandarecallablecommencingonJanuary15,2018.
TheFloatingRateNotesbearinterestataoatingrateequaltothree-monthLIBORplus4.75%(475basispoints)andarecallableall,butnot
lessthanall,atanydayaftertheinterestpaymentdateimmediatelyprecedingthematuritydate.Theclosingoftheofferingsoccurredon
October2,2013,aftersatisfactionofcustomaryclosingconditions.TheNewNotessharethecollateralpledgedforthebenetofthelenders
underCEMEX’sFacilitiesAgreement,datedasofSeptember17,2012,andothersecuredobligationshavingthebenet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,CemexAsiaB.V.,CEMEXCorp.,CemexEgyptianInvestments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.FeesandcostsrelatedtotheissuanceoftheNew
NotesforapproximatelyUS$6($78)adjustedthecarryingamountofsuchfacilities,andsuchamountisamortizedovertheremainingterm
ofeachinstrument.
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