Grupo Cementos de Chihuahua, S.A.B. de C.V. Announces the Completion of a Comprehensive New Term Loan Agreement with its Banks
June 15, 2018 at 07:55 pm EDT
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Grupo Cementos de Chihuahua, S.A.B. de C.V. announced the completion of a comprehensive new term loan agreement with its banks. The new agreement replaces all GCC’s existing bank debt, reduces interest expense, and improves terms and conditions. The new USD 400 million loan has a term of 5 years, with a variable interest rate spread of 1.25% to 2.0% over Libor, based on GCC’s debt/EBITDA ratio. The initial margin will be 1.75%. In addition, the agreement includes an unsecured USD 50 million revolving line of credit. BBVA Bancomer S.A., Banco Nacional de México, S.A., JPMorgan Chase Bank, N.A., and The Bank of Nova Scotia are leading the financing. The refinancing will result in an annualized reduction of interest expense of approximately USD 10 million. The revolving line of credit will be available to meet working capital requirements and for general corporate purposes, increasing GCC’s financial flexibility.
GCC SAB de CV, formerly known as Grupo Cementos de Chihuahua SAB de CV, is a Mexico-based company primarily engaged in the construction materials sector. The Company foocuses on the production and marketing of cement and other related building materials. The Companyâs product portfolio includes Portland grey cements, ready-mixed concrete, gypsum, additives and limestone aggregates, as well as such prefabricated products as walls, architectural concrete blocks and paving stones, among others. The Company also offers technical support and assistance for the installation of its prefabricated structures. The Company operates in Mexico and the United States, through such subsidiaries as GCC Comercial SA de CV, GCC Concreto SA de CV, GCC Rio Grande Inc, GCC Dacotah Inc, GCC Alliance Concrete Inc, Mid Continent Concrete Inc and Consolidated Ready Mix Inc.
GCC, S.A.B. DE C.V. 
