Cemex 2013 Annual Report Download - page 87

Notes to the consolidated financial statements
TheFacilitiesAgreementrequiredCEMEXtomakethefollowingamortizationpayments:(i)US$500onFebruary14,2014,(ii)US$250
onJune30,2016,and(iii)US$250onDecember31,2016.TheFacilitiesAgreementalsoprovidesthatCEMEXmust:(a)repayatleast
US$1,000oftheindebtedness undertheFacilitiesAgreementonor priortoMarch 31,2013(or adatefallingnomorethan 90days
thereafter,ifagreedtobytwothirdsoftheparticipatingcreditorsundertheFacilitiesAgreement),orthematuritydateoftheindebtedness
undertheFacilitiesAgreementwillbecomedueonFebruary14,2014;(b)onorbeforeMarch5,2014,incaseCEMEXdoesnotredeem,
purchase,repurchase,renanceorextendthematuritydateof100%ofthenotesissuedbyCEMEXFinanceEuropeB.V.andguaranteedby
CEMEXEspañatoamaturitydatefallingafterDecember31,2017,orthematuritydateoftheindebtednessundertheFacilitiesAgreement
willbecomeMarch5,2014;(c)onorbeforeMarch15,2015,incaseCEMEXdoesnotredeem,convertintoequity,purchase,repurchase,
renanceorextendthematuritydateof100%ofthe2015ConvertibleSubordinatedNotestoamaturitydatefallingafterDecember31,
2017,orthematuritydateoftheindebtednessundertheFacilitiesAgreementwillbecomeMarch15,2015;(d)onorbeforeSeptember
30,2015,incaseCEMEXdoesnotredeemorextendthematuritydateof100%oftheApril2011Notestoamaturitydatefallingafter
December31,2017,orthematuritydateoftheindebtednessundertheFacilitiesAgreementwillbecomeSeptember30,2015;(e)onor
beforeMarch15,2016,incaseCEMEXdoesnotredeem,convertintoequity,purchase,repurchase,renanceorextendthematuritydate
of100%ofthe2016ConvertibleSubordinatedNotestoamaturitydatefallingafterDecember31,2017,orthematuritydateofthe
indebtednessundertheFacilitiesAgreementwillbecomeMarch15,2016;and(f)onorbeforeDecember14,2016,incaseCEMEXdoes
notredeemorextendthematuritydateof100%oftheDecember2009NotestoamaturitydatefallingafterDecember31,2017,orthe
maturitydateoftheindebtednessundertheFacilitiesAgreementwillbecomeDecember14,2016.
FortheinitialUS$1,000repayment,atitssolediscretion,CEMEXhadtherightto:a)sellminoritystakesinCEMEX’soperations;b)sell
selectedassetsintheUnitedStates;c)sellselectedassetsinEurope;and/ord)saleofothernon-coreassets.IfduringtheFacilitiesAgreement
termCEMEXpaysdownUS$1,500andUS$2,000ofaggregateprincipalamountundertheFacilitiesAgreement,theinterestrateunderthe
outstandingamountoftheNewNoteswouldbereducedtoLIBORplus500bpsandLIBORplus450bps,respectively,andintheNewUSPP
Noteswouldbereducedto9.41%and8.91%,respectively.
AsofDecember31,2012,CEMEXachievedtheUS$1,000repaymentmilestoneofMarch2013,andthedebtamortizationrequirements
undertheFacilitiesAgreementthroughandincludingtheamortizationonDecember15,2016;withUS$4,187remainingoutstandingwith
analmaturityinFebruary2017.Asaresultoftheprepayments,theinterestrateontheNewLoansundertheFacilitiesAgreementwas
reducedtoLIBORplus450bpsandontheNewUSPPNoteswasreducedto8.91%.
Asmentionedabove,thedebtundertheFacilitiesAgreementisguaranteedbythesameentitiesthatguaranteedthedebtundertheFinancing
Agreement,andadditionallybytheNewGuarantors.TheamendedFinancingAgreementandcertainotherprecedentfacilitiesdidnotreceive
guaranteesfromtheNewGuarantors.ThedebtundertheFacilitiesAgreement(togetherwithallotherseniorcapitalmarketsdebtissuedor
guaranteedbyCEMEX,andcertainotherprecedentfacilities)isalsosecuredbyarst-prioritysecurityinterestin:(a)substantiallyallthe
sharesofCEMEXMéxico,S.A.deC.V.;CentroDistribuidordeCemento,S.A.deC.V.;CorporaciónGouda,S.A.deC.V.;MexcementHoldings,
S.A.deC.V.;NewSunwardHoldingB.V.;CEMEXTrademarksHoldingLtd.andCEMEXEspaña(the“Collateral”),and(b)allproceedsofsuch
Collateral.EffectiveDecember1,2013,CorporaciónGouda,S.A.deC.V.andMexcementHoldings,S.A.deC.V.togetherwithotherMexican
subsidiariesmergeintoCentroDistribuidordeCemento,S.A.deC.V.beingCentroDistribuidordeCemento,S.A.deC.V.thesuccessorand
survivingentityanduniversalsuccessorthatassumedalltheobligationsofthemergedentities.OnDecember3,2013,CentroDistribuidor
deCemento,S.A.deC.V.changeditsnametoCEMEXOperacionesMéxico,S.A.deC.V.
PursuanttotheFacilitiesAgreement,CEMEXisprohibitedfrommakingaggregateannualcapitalexpendituresinexcessofUS$800(excluding
certaincapitalexpenditures,and,jointventureinvestmentsandacquisitionsbyCEMEXLatamanditssubsidiaries,whichcapitalexpenditures,
jointventureinvestmentsandacquisitionsatanytimethenincurredaresubjecttoaseparateaggregatelimitofUS$350(oritsequivalent)).
IntheFacilitiesAgreement,andsubjectineachcasetothepermittednegotiatedamountsandotherexceptions,CEMEXisalsosubjectto
anumberofnegativecovenantsthat,amongotherthings,restrictorlimititsabilityto:(i)createliens;(ii)incuradditionaldebt;(iii)change
CEMEX’sbusinessorthebusinessofanyobligorormaterialsubsidiary(ineachcase,asdenedintheFacilitiesAgreement);(iv)enterinto
mergers;(v)enterintoagreementsthatrestrictitssubsidiaries’abilitytopaydividendsorrepayintercompanydebt;(vi)acquireassets;(vii)
enterintoorinvestinjointventureagreements;(viii)disposeofcertainassets;(ix)grantadditionalguaranteesorindemnities;(x)declareor
paycashdividendsormakeshareredemptions;(xi)issueshares;(xii)enterintocertainderivativestransactions;(xiii)exerciseanycalloption
inrelationtoanyperpetualbondsCEMEXissuesunlesstheexerciseofthecalloptionsdoesnothaveamateriallynegativeimpactonitscash
ow;and(xiv)transferassetsfromsubsidiariesormorethan10%ofsharesinsubsidiariesintooroutofCEMEXEspañaoritssubsidiariesif
thoseassetsorsubsidiariesarenotcontrolledbyCEMEXEspañaoranyofitssubsidiaries.
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