2023-10-31 06:03:37
The Mexican cement company Cemex refinanced a syndicated loan for 3 billion dollars, extending its maturity to 2028.
In a statement, the company explained that the credit will allow Cemex to increase liquidity and flexibility. The refinanced contract consists of a five-year amortizable term loan for $1 billion and a five-year committed revolving loan for $2 billion.
“In this volatile market with rising rates, we managed to maintain the terms and conditions including the margin framework established in 2021, while increasing the available Revolving Credit,” said Maher Al-Haffar, Executive Vice President of Finance and Administration of Cemex.
He added that the operation allowed the company to have a more uniform debt maturity profile and added that the signing of the contract allowed a reduction of 500 million dollars in term credit and an increase of 250 million dollars in revolving credit, with respect to to the previous contract.
The dollar-denominated contract will maintain the same interest rate framework, an investment grade capital structure, a maximum leverage ratio of 3.75 times over the life of the loan and a minimum interest coverage of 2.75 times.
The manager added that the loan is part of its recent financing framework linked to Cemex’s sustainability, linked to its Future in Action strategy to decarbonize its operations.
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