By Mary-Katherine Stinson
Lexington, Ky., March 10 – Cemex, SAB de CV priced $1 billion of subordinated green notes with no fixed maturity, according to a press release and a 6-K filing with the Securities and Exchange Commission.
The Rule 144A and Regulation S notes priced at par with an initial coupon of 9 1/8%.
The interest rate will reset every five years beginning June 14, 2028 based on the five-year Treasury plus the initial margin of 490.7 basis points plus the first step-up margin of 25 bps.
The interest rate for reset periods on and after June 14, 2043, the second step-up date, will be calculated based on Treasuries plus the initial 490.7 bps margin plus the 25 bps first step-up and a second 75 bps step-up.
The step-up rates are linked to the achievement of an investment-grade rating.
The notes will be callable with a make whole premium until March 14, 2028. On that date until the first step-up date of June14, 2028, the notes feature a par call option. They will be callable at par on each interest payment date thereafter.
Proceeds are earmarked to finance or refinance new or existing eligible projects related to eligible green projects for pollution prevention and control, renewable energy, energy efficiency, clean transportation, sustainable water and wastewater management and eco-efficient and/or circular economy adapted products, production technologies and processes.
Cemex is a building materials company based in Monterrey, Mexico.
| Issuer: | Cemex, SAB de CV
|
| Amount: | $1 billion
|
| Issue: | Subordinated green notes
|
| Maturity: | Perpetual
|
| Green adviser: | Sustainalytics
|
| Coupon: | 9 1/8% initially; reset every five years beginning June 14, 2028 based on the five-year Treasury plus 490.7 bps; linked to investment-grade ratings, step-up of 25 bps on June 14, 2028; step-up of 25 bps plus 75 bps starting June 14, 2043
|
| Price: | Par
|
| Yield: | 9 1/8%
|
| Call: | Make-whole call until March 14, 2028; par call starting on that date until June 14, 2028; par call on interest payment dates thereafter
|
| Change of control: | Yes
|
| Pricing date: | March 9
|
| Settlement date: | March 14
|
| Distribution: | Rule 144A and Regulation S
|
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