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TRINIDAD Cement Ltd (TCL) last week announced that it had entered into loan agreements to refinance $266.75 million of its existing debt.

TCL said the proceeds from the loans granted under the agreements will be used to repay the entirety of TCL’s debt under the Citibank original loan, with a principal amount of TT$110 million, and the entirety of TCL’s debt under its loan agreement dated July 24, 2018 with First Citizens Bank.

In a notice published on July 22, TCL said it completed three loan agreements for a total principal amount of $270 million (US$39.94 million based on an exchange rate of TT$6.76 to US$1.00) to refinance TT$266.75 million (US$39.46 million based on an exchange rate of TT$6.76 to US$1.00).

The Claxton Bay-based cement manufacturing company said it entered into:

• A loan agreement with Republic Bank Ltd as lender for a principal amount of TT$67.5 million (US$9.98 million based on an exchange rate of TT$6.76 to US$1.00);

• A loan agreement with RBC Merchant Bank (Caribbean) as lender for a principal amount of TT$67.5 million (US$9.98 million based on an exchange rate of TT$6.76 to US$1.00);

• An amendment and restatement agreement to TCL’s loan agreement dated July 24, 2018 with Citibank (Trinidad & Tobago) as lender (the “Citibank original loan”), for a principal amount of TT$135 million.

The key terms of the Republic Bank Loan are:

• Term loan for a principal sum of $67.5 million;

• The term of the Republic Bank loan is two years.

• The interest rate is 3-Month Open Market Operation rate plus 305 basis points.

• The Republic Bank Loan is guaranteed by CEMEX, S.A.B. de C.V.

The key terms of the RBC Merchant Bank Loan are:

• Term loan for a principal sum of $67.5 million;

• The term of the RBC Merchant Bank Loan is two years;

• The interest rate is 3-Month Open Market Operation rate plus 305 basis points;

• The RBC Merchant Bank Loan is guaranteed by CEMEX, S.A.B. de C.V.

The key terms of the Citibank Amendment Loan are: a. Term loan for

• Principal sum of TT$135 million

• The term of the Citibank amendment loan is two years;

• The interest rate is 3-Month Open Market Operation rate plus 305 basis points.

• The Citibank amendment loan is guaranteed by CEMEX, S.A.B. de C.V.

The most recent 3-month Treasury Bill rate on the Central Bank website was for 0.31 per cent. The website explains that “securities issued in open market operations are mainly Government of Trinidad and Tobago treasury bills and treasury notes governed by the statutory limits as outlined in the Treasury Bills Act and the Treasury Notes Act.

“OMO securities are short term in nature with maturities ranging from three months to three years.”

In its 2018 annual report, TCL said it “continued to renegotiate its loans to align the maturity profile and currency mix with the medium term cash generation requirements and to maintain flexibility to meet its funding needs”.

TCL reduced its long-term debt to $641 million in 2020 from $1.16 billion in 2015.

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