Cemex subsidiary signs US$1.15bn multiple credit

Mexican cement giant Cemex announced that Dutch subsidiary New Sunward Holding has signed a multiple credit for US$1.15bn, the company announced. The funds are earmarked for Cemex S.A., Cemex Mexico and Empresas Tolteca de Mexico. The credit includes three parts, denominated in euros, US dollars and Japanese yen. The first two-year credit is for 256mn euros (US$298mn), another three-year credit for US$550mn and a three-year credit for 32.7bn yens (US$298mn). Citigroup Global Markets and JP Morgan Securities are leading the credit structure, while the syndication agency is Credit Agricole Indosuez/Credit Lyonnais and the administrative agent is Citibank NA. Other participants include Citibank NA, ABN Amro Bank, BNP Paribas, Citigroup Global Markets, Credit Agricole/Credit Lyonnais, JP Morgan Securities and Santander Central Hispano. "The funds will allow us to refinance a revolving credit for US$400mn and pre-pay the remaining US$650mn of a preferred capital issue related to the acquisition of [US subsidiary] Southdown in 1999, which represents an important part of our refinancing needs in 2004," Cemex corporate finance director Rodrigo Trevino was quoted as saying.