Cemex 2012 Annual Report Download - page 15

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Over the course of the year, we took decisive steps to
improve our debt maturity profile, strengthen our capi-
tal structure, and regain our financial flexibility. In the
process, we appreciably increased the average life of
our debt, deleveraged our balance sheet, reduced our
refinancing risk, and enhanced our liquidity.
Among our noteworthy achievements, we refinanced
close to US$6.7 billion of debt under the Financing
Agreement, dated as of August 14, 2009, as amended,
with the support of over 55 banks and institutions.
Specifically, creditors representing approximately
92.7% of the aggregate principle amount outstanding
under the Financing Agreement agreed to exchange
their loans and private placement notes. The results of
the refinancing process were:
First, the issuance of US$6.2 billion of new loans and
new private placement notes pursuant to a new Facili-
ties Agreement and a new Note Purchase Agreement.
The final maturity of the new Facilities Agreement is
February 2017.
Second, the issuance of US$500 million of new 9.5%
senior secured notes due in 2018.
Third, approximately US$525 million remained under
the original Financing Agreement.
As a result of this milestone transaction, we not only
extended the final maturity of this debt by three years,
but also gained more financial and operational flexibil-
ity, which provides us with more time to benefit from
the recovery of our markets and more opportunity to
further consolidate our transformation efforts.
In addition, we completed the initial share offering of
a 26.65% minority position in CEMEX Latam Holdings
(CLH). CLH comprises our business units in Colombia,
Panama, Costa Rica, Nicaragua, Guatemala, El Salvador,
and Brazil. Through this transformational transaction,
we not only received approximately US$960 million
to pay down debt, but also—for the first time ever—we
enabled minority stockholders to participate in the fu-
ture growth and upside potential of a developing region
through their equity stake in an operating subsidiary.
We further unlocked untapped value, broadened our
overall base of stockholders, and enhanced our finan-
cial flexibility.
Financial
developments
US$960
US$6.7
million in net proceeds from the initial
share offering of a 26.65% minority posi-
tion in CEMEX Latam Holdings
billion of debt under the Financing Agree-
ment refinanced into a new Facilities
Agreement, extending final maturity of
this debt to February 2017
LATAM
HOLDINGS
Cultural Center Library, Colombia
15
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