Cemex 2013 Annual Report Download - page 86
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Please find page 86 of the 2013 Cemex annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Notes to the consolidated financial statements
OnJanuary11,2011,CEMEX,S.A.B.deC.V.closedtheofferingofUS$1,000aggregateprincipalamountofits9.0%SeniorSecuredNotes
duein2018(the“January2011Notes”),whichwereissuedat99.364%offacevalue,andarecallablebeginningontheirfourthanniversary.
TheJanuary2011NotessharethecollateralpledgedtothelendersundertheFacilitiesAgreementandotherseniorsecuredindebtedness
havingthebenetofsuchcollateral,andareguaranteedbyCEMEXMéxico,S.A.deC.V.,NewSunwardHoldingB.V.,CEMEXEspañaandthe
NewGuarantors.
Facilities Agreement and Financing Agreement
OnAugust14,2009,CEMEX,S.A.B.deC.V.andcertainsubsidiariesenteredintotheoriginalFinancingAgreementwithitsmajorcreditors,
bymeansof whichthe maturitiesofapproximatelyUS$14,961 ($195,839)(amountdeterminedinaccordancewiththe contracts) of
syndicated and bilateral loans, private placement notes and other obligations were extended, providing for a semi-annual amortization
schedule.TheFinancingAgreementisguaranteedbyCEMEX,S.A.B.deC.V.,CEMEXMéxico,S.A.deC.V.,NewSunwardHoldingB.V.,CEMEX
España,CEMEXConcretos,S.A.deC.V.,CEMEXCorp.,CEMEXInc.,CEMEXFinanceLLCandEmpresasToltecadeMéxico,S.A.deC.V..Asof
December31,2011,aftertheapplicationoftheproceedsfromseveralrenancingtransactions,theapplicationofthenetproceedsobtained
fromthesaleofassets,andanequityofferingofCEMEX,S.A.B.deC.V.in2009,theremainingdebtbalanceundertheFinancingAgreement
wasapproximatelyUS$7,195($100,442).ConsideringcertainprepaymentsbyDecember31,2011ofdebtundertheFinancingAgreement,
CEMEXavoidedanincreaseintheinterestrateofdebtundersuchagreementof0.5%.Untilitsmaturity,theFinancingAgreementdidnot
provideforanyfurtherincreasesintheinterestrateassociatedwithacertainamountofprepayments.
OnSeptember17,2012,CEMEXcompletedarenancingprocessofasubstantialportionofitsthenoutstandingdebtundertheFinancing
Agreement,asamendedonseveraldates,withathenoutstandingbalanceofapproximatelyUS$7,195,withpaymentsdueofapproximately
US$488inDecember2013andUS$6,707atnalmaturityinFebruary2014.PursuanttoCEMEX’sexchangeproposal(the“Exchange
Offer”),creditorswereinvitedtoexchangetheirexistingexposuresundertheexistingFinancingAgreementintooneoracombinationof
thefollowinginstruments:a)newloans(“NewLoans”)orprivateplacementnotes(“NewUSPPNotes”),asapplicable,orb)uptoUS$500in
new9.5%notes(the“September2012Notes”)tobeissuedbyCEMEXmaturinginJune2018,havingtermssubstantiallysimilartothose
ofseniorsecurednotespreviouslyissuedbyCEMEX,S.A.B.deC.V.and/oritssubsidiaries.TheSeptember2012Noteswereallocatedpro
ratatotheparticipatingcreditorsoftheFinancingAgreementintheExchangeOfferthatelectedtoreceivetheSeptember2012Notesin
theExchangeOffer.FinancingAgreementcreditorsacceptingcertainamendments,includingtheeliminationofthebenetofthesecurity
packageamongothers,receivedanamendmentfeeof20basispoints(“bps”)calculatedontheamountoftheirexistingexposuresunder
suchagreement.
Pursuant to the Exchange Offer, participating creditors representing approximately 92.7% of the aggregate principal amount of debt
outstandingundertheexistingFinancingAgreementagreedexchangetheirexistingloansandprivateplacementnotesandtoreceiveinplace
thereof:a)approximatelyUS$6,155inaggregateprincipalamountofNewLoanswithaninitialinterestrateofLIBORplus525bps(subject
todecreasedependingoncertainprepayments),andnewUSPPNoteswithaninitialinterestrateof9.66%(subjecttodecreasedepending
oncertainprepayments),issuedpursuanttoanewagreement(the“FacilitiesAgreement”)datedasofSeptember17,2012,andwithanal
maturityonFebruary14,2017,andanexchangefeeof80bpscalculatedontheamountoftheirexistingexposuresundertheFinancing
AgreementthatwereexchangedandforwhichNewLoansorNewUSPPNoteswereissuedinplacethereof;andb)US$500oftheSeptember
2012Notes,issuedpursuanttoanindenturedatedasofSeptember17,2012.ApproximatelyUS$525aggregateprincipalamountofloans
andU.S.DollarprivateplacementnotesremainedoutstandingaftertheExchangeOfferundertheexistingFinancingAgreement,asamended,
aftertheExchangeOffer.Consideringthattherelevanteconomictermsofthenewdebtinstrumentsarenotsubstantiallydifferentfrom
thoseoftheoriginalloansandprivateplacements,theaforementionedexchangeofdebtaspartoftherenancingprocessdidnotresult
intheextinguishmentoftheoriginalnancialliabilitiesunderIFRS;therefore,therewerenoeffectsinprotorloss.CEMEXadjustedthe
carryingamountofthenancialliabilityforapproximatelyUS$116inrelationtothefeesandcostincurredduringtherenancingprocess,
andthosecosts,togetherwithanyremainingcostsrelativetotheFinancingAgreementwillbeamortizedovertheremainingtermofthe
FacilitiesAgreement.AsofDecember31,2012,aftertheapplicationofproceedsresultingfromtheCEMEXLataminitialoffering(note
20D),theaggregateprincipalamountofloansandU.S.dollarprivateplacementnotesundertheamendedFinancingAgreementwasUS$55
($707),withanalmaturityonFebruary14,2014.ThisamountwasrepaidinMarch2013withproceedsfromtheissuanceoftheMarch
2019Notes.
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