Cemex 2012 Annual Report Download - page 16

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We also continued to successfully access the global
capital markets. In March, we completed separate of-
fers to exchange our 2014 Eurobonds and our out-
standing series of perpetual debentures for new senior
secured notes denominated in dollars and euros. Ap-
proximately 53% of the outstanding 2014 Eurobonds
and 48% of the outstanding perpetual debentures were
exchanged into new senior secured notes, maturing in
2019, resulting in a reduction of our company’s overall
indebtedness of approximately US$131 million. Ad-
ditionally, in October, we issued US$1.5 billion of new
9.375% senior secured notes, maturing in 2022. We
used the proceeds from these notes and CLH’s initial
share offering to prepay debt under the new Facilities
Agreement and the Financing Agreement. As a result
of these prepayments, we reduced the spread over
three-month LIBOR on the new Facilities Agreement to
450 basis points, the same spread we had under the
original Financing Agreement.
Under this year’s successful financial plan, we reduced
the amount of debt maturing through March 2015 to
about US$750 million of which approximately US$600
million matures during the first quarter of 2014. We
addressed all of our required amortizations under the
new Facilities Agreement until February 2017. We fur-
ther increased the average life of our debt to 5.0 years,
from 3.8 years at the beginning of the year, with no
significant change in our annual interest expense.
5.0
3.8
US$750
million as part of this year’s
financial plan
Debt maturing through March
2015, reduced to
Today, we are not only in better
shape financially, but also we
are much more agile and flex-
ible operationally. We are work-
ing on all of the main drivers
to regain an investment-grade
capital structure: reducing our
debt while improving our oper-
ating EBITDA generation.
20112012
Average life of debt
as of December 31
Double U Oce Building, Germany
16
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