building a STRONGER foundation - Cemex

CEMEX, S.A.B. DE C.V. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements – (Continued)
As of December 31, 2010, 2009 and 2008
(Millions of Mexican pesos)
12. FINANCIAL LIABILITIES AND DERIVATIVE FINANCIAL INSTRUMENTS
12A) SHORT-TERM AND LONG-TERM FINANCIAL LIABILITIES
As of December 31, 2010 and 2009, consolidated debt according to the interest rates, the currencies and the type of instrument in which it was
negotiated is summarized as follows:
Carrying amounts Effective rate 1
2010 2009 2010 2009
Short-term
Floating rate ................................................................................................... Ps 4,806 7,373 5.2% 5.1%
Fixed rate........................................................................................................ 831 20 7.8% 5.7%
Long-term
5,637 7,393
Floating rate ................................................................................................... 120,581 150,273 5.0% 5.0%
Fixed rate........................................................................................................ 76,600 53,478 7.5% 7.8%
197,181 203,751
Ps 202,818 211,144
2010 2009
Effective rate
Effective rate
Currency Short-term Long-term Total
1 Short-term Long-term Total
1
Dollars.................... Ps 176 137,249 137,425 6.5% Ps 950 125,441 126,391 5.7%
Euros ...................... 600 47,159 47,759 5.5% 431 57,261 57,692 5.6%
Pesos ...................... 4,705 12,636 17,341 6.8% 4,379 20,877 25,256 6.5%
Other currencies ..... 156 137 293 5.4% 1,633 172 1,805 5.3%
Ps 5,637 197,181 202,818 Ps 7,393 203,751 211,144
1 Represents the weighted average effective interest rate.
2010
Shortterm
Longterm
2009
Bank loans Bank loans
Loans in Mexico, 2011 to 2014 ...................... Ps – 2,217 Loans in Mexico, 2010 to 2014 ..................... Ps – 3,348
Loans in foreign countries, 2011 to 2018........ 499 27,985 Loans in foreign countries, 2010 to 2018 ........ 2,275 33,842
Syndicated loans, 2011 to 2014...................... – 83,741 Syndicated loans, 2010 to 2014...................... – 100,593
499 113,943 2,275 137,783
Notes payable Notes payable
Notes payable in Mexico, 2011 to 2017 ......... – 13,224 Notes payable in Mexico, 2010 to 2017 ......... – 19,041
Medium-term notes, 2011 to 2020.................. – 72,471 Medium-term notes, 2010 to 2017 ................. – 48,221
Other notes payable, 2011 to 2025 ................. 574 2,107 Other notes payable, 2010 to 2025 ................. 1,177 2,647
574 87,802 1,177 69,909
Total bank loans and notes payable ................ 1,073 201,745 Total bank loans and notes payable................ 3,452 207,692
Current maturities........................................... 4,564 (4,564) Current maturities........................................... 3,941 (3,941)
Ps 5,637 197,181 Ps 7,393 203,751
Relevant transactions during 2010 and 2009
As detailed elsewhere in note 12A, on August 14, 2009, CEMEX entered into the Financing Agreement with its major creditors. The
Financing Agreement extended the maturity of approximately US$14,961 (Ps195,839) in syndicated and bilateral loans, private placement
obligations and other obligations. On October 25, 2010, CEMEX and its lenders under the Financing Agreement agreed to amendments
which prospectively modify the requirements of certain financial ratios and tests.
On December 15, 2010, CEMEX prepaid US$100 toward maturities coming due in June 2012 under the Financing Agreement, reducing the
June 2012 amortization amount to US$47. CEMEX intends to achieve its milestones of debt reduction negotiated under the Financing
Agreement in order to maintain the current applicable margin until at least December 2011.
In June 2010, CEMEX concluded an early cash payment of Ps4,077 (US$330) in long-term CBs ("Certificados Bursátiles de Largo Plazo")
following a public tender offer and the exercise of a call option. For the early payment of CBs, CEMEX used proceeds from the optional
convertible subordinated notes (the “2010 Optional Convertible Subordinated Notes”) issued in March 2010 (see below). As of December 31,
2010, the balance of CBs outstanding under this program amounted to Ps198 (US$16). These CBs mature in March 2011.
F-34
Shortterm
Longterm