By Rebecca Melvin
New York, Nov. 28 – Cemex SAB de CV priced an upsized €650 million of seven-year senior secured notes at par on Tuesday to yield 2¾%, according to market sources.
The Rule 144A and Regulation S deal was initially talked at €400 million in size and with a yield in the 3¼% area.
The notes are non-callable for three years.
Joint bookrunners were BNP Paribas (billing and delivery), HSBC, JPMorgan, Banca IMI, BBVA and ING, and investor demand topped €2.6 billion.
Proceeds will be used fund the exercise of call provisions for Cemex’s $610.66 million of 6½% senior secured notes due 2019, which were issued in 2013, and/or its €400 million of 4¾% senior secured notes due 2022, which were issued in 2014.
Any remainder is earmarked for general corporate purposes, including repayment of other debt, in accordance with the company’s facilities agreement of July 19, 2017. And pending such application, proceeds may also be applied to temporarily reduce amounts outstanding under a revolving credit facility tranche of the 2017 credit agreement or short-term bilateral facilities.
The December 2019 notes are redeemable on and after Dec. 10 at a redemption price of 103.25% of principal plus accrued interest, and the January 2022 notes are redeemable on Jan. 11 at 102.375% plus interest.
The notes are part of the 2017 credit agreement for a share in collateral pledged to lenders and are guaranteed by Cemex Mexico, SA de CV, Cemex Concretos, SA de CV, Empresas Tolteca de Mexico, SA de CV, New Sunward Holding BV, Cemex Espana, SA, Cemex Asia BV, Cemex Finance LLC, Cemex Corp., Cemex Egyptian Investments BV, Cemex France Gestion (SAS), Cemex Research Group AG and Cemex UK.
Cemex is a cement producer based in Monterrey, Mexico.
| Issuer: | Cemex SAB de CV
|
| Amount: | €650 million, upsized from €400 million
|
| Maturity: | Dec. 5, 2024
|
| Description: | Senior secured notes
|
| Bookrunners: | BNP Paribas (billing and delivery), HSBC, JPMorgan, Banca IMI, BBVA and ING
|
| Coupon: | 2¾%
|
| Price: | Par
|
| Yield: | 2¾%
|
| Call options: | Non-callable for three years
|
| Trade date: | Nov. 28
|
| Settlement date: | Dec. 5
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | Initial price talk in the 3¼% area
|
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