Cemex negotiating refinancing deal

Byrebecca3360

Updated Fri, 05 Sep 2014 09:03:38 GMT

Mexico: Cemex has announced that it is negotiating with a number of banks in order to refinance part of its outstanding bank debt as it seeks to further lower financial costs and extend its debt maturity.

In a regulatory filing ahead of a possible private bond placement, Cemex said it is in advanced talks with a group of banks aimed at reaching a new agreement by the end of October 2014. Proceeds would be used to refinance part of an existing financing agreement with banks.

Cemex refinanced around US$15bn in bank debt during the 2009 global crisis and in 2012, with around half of the amount left to pay, agreed to reschedule some US$6bn in 2014 principal payments to 2017. Cemex has since lowered that further and owes around US$4.3bn under the agreement, which is due in 2017.

Cemex said the current talks with banks are part of its strategy to improve its financial flexibility and lower its overall debt costs. Company officials said recently that Cemex's main priority is to recover the investment-grade ratings that it lost during the 2009 crisis.