GHR advised CEMEX on its new €500 million unsecured sustainability-linked Term Loan
GHR Rechtsanwälte acted for CEMEX, S.A.B. de C.V. (NYSE: CX) in connection with its new €500 million 3-year unsecured sustainability-linked Term Loan. The transaction successfully closed in October 2022.
The new Term Loan, which is denominated exclusively in Euros, has nearly identical terms and conditions to those in the U.S.$ 3.25 billion Credit Agreement dated October 29, 2021, including guarantor structure, financial covenants and a parallel interest rate margin grid. GHR Rechtsanwälte represented CEMEX in the 2021 financing as well.
The Term Loan is issued under CEMEX’s Sustainability-linked Financing Framework, increasing the amount of debt that is linked to the company’s Future in Action strategy. All sustainability-linked loans issued under the Framework have the same metrics and adjustments to the interest rate margin.
The Joint Bookrunners and Joint Lead Arrangers under the Term Loan are BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México (BBVA), BNP Paribas, Citigroup Global Markets Inc., and Mizuho Bank Ltd., New York Branch. Additionally, BBVA acted as Sustainability Structuring Agent.
CEMEX is a global construction materials company. It is one of the largest cement companies based on annual installed cement production capacity and one of the largest ready-mix concrete companies worldwide. CEMEX primarily engages in the production, distribution, marketing, and sale of cement, ready-mix concrete, aggregates, and clinker.
GHR worked with CEMEX’s in-house counsels in Mexico (Roger Saldaña Madero, Guillermo F. Hernandez and Mariana Zertuche).
The GHR team consisted of partners Marc Grüninger (Lead, Corporate/M&A, Finance), Markus Brülhart (Corporate/M&A, Finance), Stephan Hofer (Corporate/M&A, Finance), and Gerhard Roth (Tax), as well as associates Jil Suter, Yves Sommer and Nina Häberli (Corporate/M&A, Finance).
Skadden, Arps, Slate, Meagher & Flom LLP (New York) advised CEMEX on the new Term Loan. Cleary Gottlieb Steen & Hamilton LLP (New York) and Galicia Abogados, S.C. (Mexico) advised the bookrunners and lead arrangers.