CEMEX, S.A.B. de C.V. ("CEMEX") (NYSE: CX) announced today that it has received U.S.$515 million of commitments from banks that have agreed to join the credit agreement entered into on September 30, 2014 (the "Credit Agreement"). Following the completion of customary closing conditions, the banks that provided the new commitments will accede the Credit Agreement as additional lenders, increasing the total amount of the Credit Agreement from U.S.$1.35 billion to U.S.$1.87 billion. The incremental amount raised will be applied to partially prepay the Facilities Agreement dated September 17, 2012 (as amended from time to time, the "Facilities Agreement") and to pay other debt. After the prepayment of the Facilities Agreement, the remaining outstanding amount under this facility will be reduced to approximately U.S.$2.05 billion, scheduled to mature in 2017. Additionally, CEMEX announced it has obtained the required consents to amend the Facilities Agreement so the covenants and undertakings under this facility are conformed to those of the Credit Agreement. The main amendments include:
- The amounts allowed for capital expenditures are increased from U.S.$800 million to U.S.$1 billion per year;
- The amounts allowed for permitted acquisitions and investments in joint ventures are increased from U.S.$250 million to U.S.$400 million per year;
- The restrictions on asset swaps are eliminated; and
- A new mandatory prepayment regime that eliminates the cash sweep covenant and provides CEMEX with more discretion to use its cash is introduced.