Cemex Prices $1B Notes for Latam Holdings Stake

TL;DR

CX priced $1B in debt to buy more of Cemex Latam Holdings.

AI Summary

On March 13, 2024, Cemex, S.A.B. de C.V. announced the pricing of its offering of $1.0 billion aggregate principal amount of 7.625% senior notes due 2034. The offering is expected to close on March 18, 2024. Cemex intends to use the net proceeds from the offering to finance its previously announced acquisition of a 33.4% stake in Cemex Latam Holdings, S.A. for approximately $330 million.

Why It Matters

This debt issuance allows Cemex to fund a strategic acquisition, increasing its stake in a key regional subsidiary and potentially enhancing its market position in Latin America.

Risk Assessment

Risk Level: medium — The company is taking on significant debt, which increases financial leverage and interest expense, while the success of the acquisition is subject to market conditions and integration risks.

Key Numbers

• $1.0B — Senior Notes Offering (Amount raised to fund acquisition)
• 7.625% — Senior Notes Interest Rate (Cost of debt)
• $330M — Cemex Latam Holdings Stake Acquisition (Use of proceeds)

Key Players & Entities

• Cemex, S.A.B. de C.V. (company) — Issuer
• CX (company) — Ticker Symbol
• $1.0 billion (dollar_amount) — Aggregate principal amount of senior notes
• 7.625% (dollar_amount) — Interest rate on senior notes
• 2034 (date) — Maturity year of senior notes
• March 13, 2024 (date) — Pricing date of notes offering
• March 18, 2024 (date) — Expected closing date of notes offering
• Cemex Latam Holdings, S.A. (company) — Acquisition target
• $330 million (dollar_amount) — Approximate cost of acquiring stake in Cemex Latam Holdings

FAQ

Filing Documents

• d729453d6k.htm (6-K) — 11KB
• 0001193125-24-067144.txt ( ) — 12KB

From the Filing

6-K 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 March 2024 Commission File Number: 001-14946 Cemex, S.A.B. de C.V. (Translation of Registrants name into English) Avenida Ricardo Margáin Zozaya #325, Colonia Valle del Campestre, San Pedro Garza García, Nuevo León 66265, México (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-FForm 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 On March 13, 2024, Cemex, S.A.B. de C.V. (NYSE:CX) (Cemex) informed the Mexican Stock Exchange (Bolsa Mexicana de Valores) that S&P Global Ratings (S&P) has upgraded Cemexs long-term global scale issuer credit rating from BB+ to investment grade BBB-. Additionally, S&P also upgraded Cemexs long-term national scale rating to mxAA+ from mxAA, confirmed Cemexs short-term national rating of mxA-1+, and upgraded Cemexs unsecured senior notes global and national issuance scale rating to BBB- from BB+ and to mxAA+ from mxAA, respectively, as well as its subordinated notes with no fixed maturity to BB from B+. The information furnished with this Form 6-K shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act. 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: March 14, 2024 By: /s/ Rafael Garza Lozano Name: Rafael Garza Lozano Title:Chief Comptroller 3

View Full Filing

View this 6-K filing on SEC EDGAR