The notes being issued by Cemex Finance LLC will bear interest at an annual rate of 9.375% and mature in 2022. Cemex says they will be issued at par and will be callable commencing on their 5th anniversary. The closing of the offering is expected to occur on October 12, 2012, subject to satisfaction of customary closing conditions.
In a press statement, Cemex says it intends to use the net proceeds from the offering to prepay principal outstanding under Cemex Facilities Agreement, dated September 17, 2012, thereby allowing the Mexican company to satisfy the March 31, 2013 $ 1 billion prepayment milestone, and the February 14, 2014 $ 500 million amortisation payment. These payments will reduce the interest rate on the Facilities Agreement debt by 25 basis points.
