May 2017 Financial News

Trinidad Cement Limited - Debt Refinancing - Changes in Credit Arrangements

May 02, 2017

NOTICE TO SHAREHOLDERS
DEBT REFINANCING – CHANGES IN CREDIT ARRANGEMENTS

TCL wishes to advise that it has refinanced the August 2015 credit agreement made by the Company with Citibank Europe plc UK Branch as Administrative Agent and other parties thereto (as amended from time to time) (“the 2015 Loan”) by borrowing the sums hereinafter described and prepaying the 2015 Loan.

On April 25, 2017, the TCL Board of Directors considered draft refinancing agreements in relation to a loan of up to Two Hundred and Forty Five Million Trinidad and Tobago Dollars (TT$245,000,000.00) to be made among the Company and the financial institutions from time to time listed as lenders therein and First Citizens Bank Limited as Agent (the “Loan Agreement”), and passed resolutions approving (inter alia) the terms and conditions outlined therein. The 2015 Loan was settled with (i) proceeds of the Loan Agreement, (ii) Ten Million United States Dollars (US$10,000,000.00) obtained from cash-in-hand, and (iii) One Hundred Million United States Dollars obtained from a Revolving Master Loan Agreement entered into on April 25, 2017, between TCL and CEMEX España, S.A. (the “Intercompany Loan Agreement”).

The Loan Agreement became effective on April 26, 2017. The key terms of the Loan Agreement are:

a. The aggregate loan amount is Two Hundred and Forty Five Million Trinidad and Tobago Dollars (TT$245,000,000.00);
b. The term of the Loan Agreement is Six (6) Months;
c. The interest rate is Three (3) Month TT Treasury Bill + 375 basis points;
d. The arranger is NCB Global Finance Limited;
e. The Loan Agreement is guaranteed by CEMEX, S.A.B. de C.V.;
f. The Loan Agreement is not guaranteed by TCL’s subsidiaries as was the 2015 Loan; and
g. The Loan Agreement does not contain most of the covenants the 2015 Loan contained.

The key terms of the Intercompany Loan Agreement are:

a. The loan amount is up to One Hundred and Fifty Million United States Dollars (US$150,000,000.00) in one or several instalments and under a revolving framework;
b. The term of the Intercompany Loan Agreement is Three (3) Years; and
c. The interest rate is Six (6) Month LIBOR + 499 basis points.

This Notice is published pursuant to Section 64(1)(b) of the Trinidad and Tobago Securities Act, 2012.
 

Source:
The Trinidad and Tobago Stock Exchange Limited
Tuesday May 2, 2017