CEMEX Holdings Philippines, Inc. has signed a loan facility with two of its subsidiaries using the proceeds from its recently concluded stock rights offering (SRO).
In a disclosure to the stock exchange yesterday, the cement manufacturer said it executed two revolving master loan facility agreements with Solid Cement Corp. and APO Cement Corp.
The agreement with Solid Cement covers a principal amount of up to P12.73 billion with an interest rate of 10.02% per annum, while the agreement with APO Cement is up to P2.54 billion with an 11.12% interest rate per annum.
Both deals are set to mature on March 3, 2027.
“The primary or principal source of funding of these facility agreements will be the proceeds of the recent SRO of Cemex, which are expected to be released subject to and following the listing of offer shares on the Philippine Stock Exchange scheduled on Mar. 4,” it said.
A revolving loan facility is a flexible type of loan that allows the borrower to borrow, repay and borrow again, as opposed to a term loan where the payment schedule is fixed.
Cemex said the proceeds Solid Cement will get from the agreement will be used to repay its outstanding debt to Cemex Asia, B.V., which was used to finance the construction of its new integrated cement line in Antipolo City, Rizal. The rest of the proceeds will be used for other general corporate purposes.
For the agreement with APO Cement, Cemex said the proceeds will be used to also repay its outstanding debt to Cemex Asia, B.V. and finance general corporate purposes.
Cemex raised P12.54 billion from its SRO last month after selling 8.29 billion common shares which will be listed at the stock exchange today.
The company is allocating P7.4 billion for capital expenditures (capex) this year, where P1 billion will be invested as maintenance capex and P6.4 billion will finance the expansion of its Solid Cement Plant in Rizal.
Cemex is the Philippine unit of Mexico-based Cemex S.A.B. de C.V., operating the Island and Rizal cement brands distributed in Luzon and the APO brand in Visayas and Mindanao.
Shares in Cemex at the stock exchange gained four centavos or 3.15% to P1.31 each on Tuesday. — Denise A. Valdez