As part of the amendment process, CEMEX is extending the approximately US$1.1bn of maturities by 3 years, representing on aggregate 92% of the July 2020 and January 2021 maturities under the 2017 Credit Agreement.
The building materials giant says the extension means that it currently does not have any relevant debt maturities until July 2021, aside from its 3.72% subordinated convertible notes maturing on March 2020 with a principal amount of approximately US$521mn.
"We are very pleased with this transaction which allows us to extend our maturities, as we continue to make progress towards regaining investment grade credit metrics,” said CEMEX chief financial officer José Antonio González. “The process was highly successful thanks to the level of engagement and support from our lenders in the 2017 Credit Agreement.”
As part of the amendments to the 2017 Credit Agreement, CEMEX is making certain adjustments for the implementation of IFRS 16 – Leases, and the neutralisation of any potential effect from such adoption on its consolidated financial leverage ratio. In addition, CEMEX says it is delaying the scheduled tightening of the consolidated financial leverage ratio limit by one year. In addition, the company's consolidated financial leverage ratio will now be calculated on a net debt basis.
