Grupo Cementos de Chihuahua in a $510 Million Refinancing

Cleary Gottlieb represented Grupo Cementos de Chihuahua in a refinancing consisting of a high yield debt offering and a term loan facility. GCC issued $260 million 8.125% Senior Secured Notes due 2020. The notes were sold in a Rule 144A / Regulation S offering. The transaction priced on February 1 and closed on February 8.

Concurrently with the offering of the notes, GCC entered into a syndicated term loan facility consisting of (1) a U.S. dollar-denominated tranche in an aggregate principal amount of $205 million and (2) a Mexican peso-denominated tranche in an aggregate principal amount equivalent to $45 million.

The notes and the term loan facility are secured by a first-priority security interest over substantially all of the shares of, and guaranteed by, certain of GCC’s subsidiaries.

The proceeds of the transaction were used to repay GCC’s outstanding private placement and syndicated bank debt. The closing of the refinancing marked the conclusion of protracted ongoing negotiations between GCC and its creditors following GCC’s $740 million debt restructuring in May 2010, in which Cleary Gottlieb represented GCC.

GCC is a leading supplier of cement, aggregates, concrete and construction-related products in Mexico and the United States. GCC has annual cement production capacity of approximately 5.0 million tons. Founded in 1941, GCC’s shares trade on the Mexican Stock Exchange under the ticker symbol GCC*.