June 28, 2013
When its sales collapsed in the wake of the financial crisis, Cemex paid a high price. Its bond issues had to offer high single-digit yields amid concern over the firm’s ability to meet its debt covenants.
But now, with a multi-billion dollar restructuring behind it, the company has finally made progress in bringing down its once crippling interest payments. And today, it boasts the much-needed flexibility to cut its debt costs further.
Cemex restructured $15 billion of bank borrowings in 2009, and has used liability management exercises in the years since to lengthen its maturity profile. In 2012, it met a high take-up on a liability management exercise to extend the tenors on some $7 b
A successful restructuring behind it, Cemex is focusing on cutting debt costs while it can