UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 or 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of August, 2015
Commission File Number: 001-14946
CEMEX, S.A.B. de C.V.
(Translation of Registrant’s name into English)
Avenida Ricardo Margáin Zozaya #325, Colonia Valle del Campestre
Garza García, Nuevo León, México 66265
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Contents
| 1. | Press release of CEMEX, S.A.B. de C.V. (NYSE:CX) dated August 3, 2015 announcing the completion of the refinancing of its 2012 Facilities Agreement. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, CEMEX, S.A.B. de C.V. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| CEMEX, S.A.B. de C.V. | ||||||
| (Registrant) | ||||||
| Date: August 3, 2015 | By: | /s/ Rafael Garza | ||||
| Name: | Rafael Garza | |||||
| Title: | Chief Comptroller | |||||
EXHIBIT INDEX
| EXHIBIT NO. |
DESCRIPTION | |
| 1. | Press release of CEMEX, S.A.B. de C.V. (NYSE:CX) dated August 3, 2015 announcing the completion of the refinancing of its 2012 Facilities Agreement. | |
Exhibit 1
| Media Relations Jorge Pérez +52 (81) 8888-4334 mr@cemex.com |
Investor Relations Eduardo Rendón +52 (81) 8888-4256 ir@cemex.com |
Analyst Relations Lucy Rodriguez +1 212 317-6007 ir@cemex.com |
CEMEX SUCCESFULLY COMPLETES REFINANCING
OF ITS 2012 FACILITIES AGREEMENT DUE FEBRUARY 2017
MONTERREY, MEXICO. AUGUST 3, 2015.– CEMEX, S.A.B. de C.V. (“CEMEX”) (NYSE: CX) announced today that it has fully repaid the total amount outstanding of approximately U.S.$1.94 billion under the facilities agreement dated September 17, 2012, as amended from time to time (the “2012 Facilities Agreement”), with new funds from 17 financial institutions. These lenders have joined the credit agreement dated September 29, 2014, as amended (the “Credit Agreement”) under new tranches, allowing CEMEX to increase the average life of its syndicated bank debt to approximately 4 years. Other financial institutions may join the Credit Agreement in the following months.
With this transaction, total commitments under the Credit Agreement increased to approximately U.S.$3.79 billion. These commitments include approximately EUR 620 million and approximately U.S.$3.12 billion, out of which about U.S.$710 million are in a revolving credit facility. The Credit Agreement now has an amortization profile, considering all commitments, of approximately 10% in 2017; 25% in 2018; 25% in 2019; and 40% in 2020.
As a result of this refinancing, CEMEX has no significant debt maturities in 2016 and 2017 other than the approximately U.S.$352 million of Convertible Subordinated Notes due March 2016 and approximately U.S.$373 million corresponding to the first amortization under the Credit Agreement in September 2017.
In addition, all tranches under the Credit Agreement have substantially the same terms, including an applicable margin over LIBOR of between 250 to 400 basis points, depending on the debt leverage ratio of CEMEX, as follows:
| Consolidated Leverage Ratio |
Applicable Margin | |||
| > 5.50x |
400 bps | |||
| < 5.50x > 5.00 |
350 bps | |||
| < 5.00x > 4.50 |
325 bps | |||
| < 4.50x > 4.00 |
300 bps | |||
| < 4.00x > 3.50 |
275 bps | |||
| < 3.50x |
250 bps | |||
Currently, the applicable margin under the Credit Agreement, considering CEMEX’s debt leverage ratio as of June 30, 2015, is 350 basis points and represents an improvement compared to the margin of 450 basis points applicable in the 2012 Facilities Agreement. On an annualized basis, this initial reduction of 100 basis points in the applicable margin translates into interest expense savings of close to U.S.$20 million.
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The new tranches share the same guarantors and collateral package as the original tranches under the Credit Agreement. The leverage covenant included in the Credit Agreement will remain at 6.0x until March 31, 2016 and will gradually decline to 4.0x by June 30, 2019.
“We are encouraged by the completion of this transaction that has allowed us to fully repay the 2012 Facilities Agreement well ahead of its maturity in February of 2017,” said Jose Antonio González, CEMEX’s Chief Financial Officer. “We have now consolidated our syndicated bank debt in a single agreement under improved conditions that better reflect our financial metrics. We are pleased with the interest shown by the bank market in this transaction and the continued support of our lenders.”
In this transaction Banco Santander (México) and BBVA Securities Inc. acted as Joint Lead Arrangers and Joint Bookrunners and also as lenders, directly or through their affiliates.
CEMEX is a global building materials company that provides high-quality products and reliable services to customers and communities in more than 50 countries. CEMEX has a rich history of improving the well-being of those it serves through innovative building solutions, efficiency advancements, and efforts to promote a sustainable future. For more information, please visit www.cemex.com
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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 or the project herein described to be materially different from those expressed or implied in this release. 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. The term “Consolidated Leverage Ratio” has the meaning ascribed to it in the Credit Agreement dated September 29, 2014.
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