Cemex 2013 Annual Report Download - page 85

Notes to the consolidated financial statements
OnOctober12,2012,throughitssubsidiaryCEMEXFinanceLLC,CEMEXclosedtheofferingofUS$1,500aggregateprincipalamountof
9.375%SeniorSecuredNotesduein2022(the“October2012Notes”).TheOctober2012Notes,whichwereissuedatparandwillbe
callablecommencingontheir5thanniversary,areunconditionallyguaranteedbyCEMEX,S.A.B.deC.V.,CEMEXMéxico,S.A.deC.V.,CEMEX
España,NewSunwardHoldingB.V.,CEMEXConcretos,S.A.deC.V.,CEMEXCorp.andEmpresasToltecadeMéxico,S.A.deC.V.,aswellas
byCEMEXResearchGroupAG,CEMEXShippingB.V.,CEMEXAsiaB.V.,CEMEXFranceGestion(S.A.S.),CEMEXUK,andCEMEXEgyptian
InvestmentsB.V.(jointlythe“NewGuarantors”),whichalsoguaranteedebtundertheFacilitiesAgreement.Thenetproceedsfromthe
offering,approximatelyUS$1,489,wereusedtorepayindebtednessundertheFacilitiesAgreement,whichallowedCEMEXtoachievethe
rstdebtrepaymentmilestoneofMarch2013andthereductionintheinterestrateundersuchagreementby25basispoints,asdetailed
inothersectionofthisnote16A.
OnMarch23,2012,throughseveralexchangeoffersmadeonaprivateplacementbasisbyCEMEXEspaña’sLuxembourgbranch,CEMEX
nalizedtheissuanceof:a)approximately€179aggregateprincipalamountof9.875%Euro-denominatedseniorsecurednotesdue2019;
andb)approximatelyUS$704aggregateprincipalamountof9.875%Dollar-denominatedSeniorSecuredNotesdue2019(collectively,the
“March2012Notes”),inexchangeforapproximately€470,or53%,ofitsthenoutstandingEuro-denominated4.75%notesdue2014,and
approximatelyUS$452,or48%,inseveralseriesofitsthenaggregateoutstandingperpetualdebentures(note20D).TheMarch2012Notes
areunconditionallyguaranteedbyCEMEX,S.A.B.deC.V.,CEMEXMéxico,S.A.deC.V.,NewSunwardHoldingB.V.andtheNewGuarantors
andsharethesamecollateralthatsecurestheFacilitiesAgreementandotherseniorsecureddebthavingthebenetofsuchcollateral.Asa
resultoftheprivateexchanges,CEMEXgeneratedin2012againofapproximatelyUS$131($1,680),representingthedifferencebetween
thenotionalamountoftheMarch2012Notes,andtheseveralseriesofthereacquiredandcancelledperpetualdebentures,whichwas
recognizedwithin“Otherequityreserves.”
DuringDecember2011,CEMEXexchangedthroughmarkettransactionsanancialassetsheldinitsportfoliooflong-terminvestments
forperpetualdebenturesanddebtinstrumentsissuedbyCEMEXsubsidiaries.Inaddition,duringthesamemonth,CEMEXreceivedfrom
athirdparty,asasettlementofanaccountreceivable,theequityinterestofanentitywhoseassetswheremainlycomprisedbyperpetual
debenturesanddebtinstrumentsissuedbyCEMEXsubsidiaries.Asaresult,asofDecember31,2011,CEMEXcancelledinitsbalancesheet
aportionofseveralseriesofitssubsidiaries’debtinstruments,heldbythenewlyacquiredentityanditsothersubsidiaries,foranaggregate
notionalamountofapproximately$977,aswellasportionsofseveralseriesofperpetualdebentures(note20D)foranaggregatenotional
amountofapproximately$3,029,amongothers.Consideringthedifferencebetweenthefairvalueoftheinstrumentsandtheirnotional
amount,aspartofthiscancellation,CEMEXrecognizedin2011again,netofcertaincommissions,ofapproximately$1,630,ofwhich,
approximately$239associatedwithCEMEX’sdebtinstruments,wasrecognizedwithin“Otherexpenses,net,”andapproximately$1,391
associatedwiththeperpetualdebentures,wasrecognizedinstockholders’equityaspartofotherequityreserves.
OnJuly11,2011,CEMEX,S.A.B.deC.V.closedthereopeningoftheJanuary2011Notes,describedbelow,andissuedUS$650aggregate
principalamountofadditionalnotesat97.616%offacevalueplusanyaccruedinterest.CEMEXusedthenetproceedsfromthereopening
forgeneralcorporatepurposesandtherepaymentofdebt,includingdebtundertheFinancingAgreement.
OnApril5,2011,CEMEX,S.A.B.deC.V.closedtheofferingofUS$800aggregateprincipalamountofFloatingRateSeniorSecuredNotes
duein2015(the“April2011Notes”),whichwereissuedat99.001%offacevalue.TheApril2011Notesbearinterestataoatingrate
equaltothree-monthLIBORplus5%(500basispoints)andarecallableall,butnotlessthanall,atanydayaftertherstinterestpayment
dateimmediatelyprecedingthematuritydate.TheApril2011NotesareunconditionallyguaranteedbyCEMEXMéxico,S.A.deC.V.,New
SunwardHoldingB.V.,CEMEXEspañaandtheNewGuarantors.Thenetproceedsfromtheoffering,approximatelyUS$788,wereusedto
repayindebtednessundertheFinancingAgreement.
On March 4, 2011, a CEMEX subsidiary closed a private exchange transaction whereby it exchanged approximately €119 aggregate
principalamountof6.277%perpetualdebenturesforapproximatelyUS$125($1,491)aggregateprincipalamountofnew9.25%Dollar-
denominatedSenior Secured Notes due2020,described below.Asa resultof theprivateexchange,approximately€119in aggregate
principalamountofthe6.277%PerpetualDebentureswerecancelled,generatingin2011againofapproximately$446,representingthe
differencebetweenthenotionalamountofthereacquiredperpetualdebenturesandtheNewSeniorSecuredNotes,whichwasrecognized
within“Otherequityreserves.”
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