CEMEX Obtains Required Consents to Amend Its Credit Agreement
07 March 2016 - 10:30PM
Business Wire
CEMEX, S.A.B. de C.V. ("CEMEX") (NYSE:CX), announced today that,
in line with CEMEX’s current initiatives of enhancing financial
flexibility and reducing risk, it has obtained the required
consents to amend its facilities agreement dated September 29,
2014, as amended and restated (the “Credit Agreement”), in order to
delay the scheduled tightening in its consolidated financial
leverage and coverage ratio limits by one year. The formalization
of the amendment is subject to customary conditions and is expected
to be finalized in the following days. Pursuant to the amendment,
the leverage ratio covenant in the Credit Agreement will remain at
6.0 times until and including March 31, 2017, and will gradually
decline to 4.0 times by June 30, 2020, and the margin grid in the
Credit Agreement will be modified such that if the consolidated
leverage ratio is greater than 5.50 times in the reference periods
ending on December 31, 2016, March 31, 2017, June 30, 2017, and
September 30, 2017, the applicable margin will be 425 bps instead
of 400 bps. All other levels in the margin grid remain
unchanged.
In addition, the Credit Agreement will be amended to allow CEMEX
the right, subject to meeting local requirements in the
Philippines, to sell a minority stake in a subsidiary that directly
and indirectly mainly owns CEMEX’s cement manufacturing assets in
the Philippines.
"The amendment underscores the recognition given to CEMEX's
business and financial strategy by its core banks," said Jose
Antonio Gonzalez, CEMEX’s Chief Financial Officer. “We are pleased
by their continued support and we remain committed to our stated
targets of enhancing free cash flow, asset disposals and debt
reduction, which should contribute to our objective of receiving an
investment grade credit rating."
CEMEX is a global building materials company that provides
high-quality products and reliable service to customers and
communities in more than 50 countries throughout the world. CEMEX
has a rich history of improving the well-being of those it serves
through its efforts to pursue innovative industry solutions and
efficiency advancements and to promote a sustainable future.
This press release contains forward-looking statements and
information that are necessarily subject to risks, uncertainties
and assumptions. Many factors could cause the actual results,
performance or achievements of CEMEX to be materially different
from those expressed or implied in this release, including, among
others, the non-formalization of the amendments to the Credit
Agreement, changes in general economic, political, governmental and
business conditions globally and in the countries in which CEMEX
does business, changes in interest rates, changes in inflation
rates, changes in exchange rates, the level of construction
generally, changes in cement demand and prices, changes in raw
material and energy prices, changes in business strategy and
various other factors. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described
herein. CEMEX assumes no obligation to update or correct the
information contained in this press release.
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version on businesswire.com: http://www.businesswire.com/news/home/20160307005519/en/
CEMEX, S.A.B. de C.V.Media Relations:Jorge Pérez, +52(81)
8888-4334mr@cemex.comorInvestor Relations:Eduardo Rendón, +52(81)
8888-4256ir@cemex.comorAnalyst Relations:Lucy Rodriguez, +1
212-317-6007ir@cemex.com
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