Cemex prepays debt due September 2017

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Thursday, December 1, 2016

Mexican cement group Cemex has prepaid US$373mn in debt due in September 2017 under the facilities agreement of September 2014, the company announced in a filing sent to the Mexican stock exchange.

As a result of the prepayment, US$664mn of currently funded commitments that are due to mature in 2018 have been exchanged into a revolving facility, under the original amortization schedule and the same terms and conditions.

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According to Cemex, this new revolving credit will allow it to optimize the use of the proceeds of asset sales and free cash flow, as well as to better manage its debt profile.

In addition to this new revolving facility, Cemex has an additional US$749mn in commitments under revolving facilities, which will mature in 2020. The company has no relevant maturities through March 2018.

The statement adds that, since December 2014, the company has been able to reduce its debt by 19%.

In recent months, Cemex announced that it was trying to divest some of its assets. At the end of last month, it sold some of its US assets to fellow Mexican cement company Grupo Cementos de Chihuahua for a total of US$306mn.