General Announcement::Debenture Issuance and Debt Refinance

Issuer & Securities

Issuer/ Manager
CIMPOR FINANCIAL OPERATIONS B.V.
Securities
CIMPORFIN US$750M5.75%N240717A - US17186LAA17 - 13LB
CIMPORFIN US$750M5.75%N240717R - USN20137AD23 - 13MB
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
09-Jun-2020 18:04:16
Status
New
Announcement Sub Title
Debenture Issuance and Debt Refinance
Announcement Reference
SG200609OTHRTSYE
Submitted By (Co./ Ind. Name)
Gabriel Motta
Designation
Director of Finance
Effective Date and Time of the event
09/06/2020 00:00:00
Description (Please provide a detailed description of the event in the box below)
InterCement Financial Operations B.V. would like to announce that on June 8, 2020, the InterCement Group concluded a debenture issuance by InterCement Participacoes and InterCement Brasil in an aggregate principal amount of BRL 4.7 billion equivalent to approximately 910 million US Dollars, to refinance its existing outstanding loans and debentures scheduled to mature from 2020 until 2024. This represents an additional and important step of the Group s comprehensive liability management plan, together with the October 2017 IPO of Loma Negra CIASA, our subsidiary in Argentina, and the January 2018 sale of its assets in Portugal and Cape Verde.

These two new debentures will strengthen the balance sheet of the InterCement Group, by allowing the Group to lengthen its scheduled debt amortization, with principal payments commencing in 2023 and final maturity in May 2027. These debentures will bear interest linked to the Brazilian base interest rate plus a spread of 3.75% per annum and also will enable the Group to match its expected cash flow generation with its debt currency profile. The debentures will be mandatorily redeemable in May 2024 if the Group is unable to refinance its existing notes due 2024.

With the closing of the issuance of the debentures and the related refinancing, more than 50% of the Groups consolidated indebtedness is now denominated in BRL, with approximately 35% denominated in USD. These new debentures are secured by the shares of Loma Negra CIASA owned by the Group and are not convertible into equity.

Banco Bradesco, Banco do Brasil and Banco Itau were the coordinators for these debenture issuances. Intercement Brasil issued debentures in an aggregate principal amount of BRL 1.7 billion, while Intercement Participacoes issued debentures in an aggregate principal amount of BRL 3.0 billion.