building a STRONGER foundation - Cemex

On June 17, 2010, we announced the exercise of our call option with respect to certain CBs otherwise maturing in March
2011 for an aggregate principal amount of approximately Ps 1.4 billion (U.S.$110 million).
On June 2, 2010, we announced the early payment of approximately Ps2.6 billion (approximately U.S.$202 million) in
CBs, following a public cash tender offer in Mexico to redeem outstanding CBs for up to approximately Ps6.1 billion
(approximately U.S.$467 million).
On May 12, 2010, our subsidiary, CEMEX España, acting through its Luxembourg branch, issued U.S.$1,067,665,000
aggregate principal amount of its 9.25% Dollar-denominated Notes, and €115,346,000 aggregate principal amount of its
8.875% Euro-denominated Notes in exchange for a majority in principal amount of our then outstanding perpetual
debentures.
On April 5, 2010, we commenced an exchange offer and consent solicitation directed to the holders of the 6.196% Fixedto-Floating
Rate Callable Perpetual Debentures, 6.640% Fixed-to-Floating Rate Callable Perpetual Debentures, 6.722%
Fixed-to-Floating Rate Callable Perpetual Debentures and 6.277% Fixed-to-Floating Rate Callable Perpetual Debentures.
Pursuant to the terms of the 2010 Exchange Offer, we offered the holders of each series of the perpetual debentures May
2010 Notes in exchange for their U.S. Dollar-denominated and Euro-denominated perpetual debentures, in private
placement transactions exempt from registration pursuant to Section 4(2) of the Securities Act and Regulation S under the
Securities Act.
On March 30, 2010, we closed the offering of U.S.$715 million of the 2010 Optional Convertible Subordinated Notes,
including the initial purchasers’ exercise in full of their over-allotment option, in transactions exempt from registration
pursuant to Rule 144A under the Securities Act.
On January 19, 2010, our subsidiary, CEMEX Finance LLC, issued an additional U.S.$500 million aggregate principal
amount of its 9.50% Dollar-denominated Notes, which were originally issued on December 14, 2009 in the amount of
U.S.$1,250 million, in transactions exempt from registration pursuant to Rule 144A and Regulation S under the Securities
Act.
For a description of our financing activities after December 31, 2010, see “Item 3 — Key Information —Summary of our
Recent Financial History” and “— Recent Developments — Recent Developments Relating to our Indebtedness.”
Our Equity Forward Arrangements
In connection with the sale of CPOs of AXTEL (note 9A to our consolidated financial statements included elsewhere in this
annual report) and in order to maintain exposure to changes in the price of such entity, in March 2008, CEMEX entered into a forward
contract to be settled in cash over the price of 119 million CPOs of AXTEL (59.5 million CPOs with each counterparty), which was
originally set to mature in April 2011. During 2009, in order to reset the exercise price included in the contract, CEMEX instructed the
counterparties to definitively dispose of the deposits in margin accounts for approximately Ps207 million, and each of the
counterparties exercised an option to maintain the contract over their respective 59.5 million CPOs of AXTEL until October 2011.
During 2010, one of the counterparties further extended the maturity of 50% of the notional amount of this forward contract to April
2012. Changes in the fair value of this instrument generated a loss of approximately U.S.$43 million (Ps545 million) in 2010, a gain of
approximately U.S.$32 million (Ps435 million) in 2009 and a loss of approximately U.S.$196 million (Ps2,197 million) in 2008.
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