Cemex postpones offering of senior notes

By Paul A. Harris

St. Louis, March 9 - Mexico's Cemex, SAB de CV has indefinitely postponed a benchmark-sized, dollar-denominated offering of senior notes (//BB), according to a press release issued by the company on Monday.

The company also announced that it has begun discussions with its core banks to renegotiate the majority of its outstanding debt, about $14.5 billion in syndicated and bilateral obligations.

The notes were to be the first Cemex issue to come with high-yield covenants.

Citigroup had been leading the bond deal in a syndicate that also included BBVA Securities, HSBC, RBS Greenwich Capital and Santander Investments.

Proceeds were earmarked for refinancing debt.

Initially the deal size had been expected to be around $500 million. However, during the time that the offering was in the market, the size ultimately shrunk to approximately half that amount, according to a market source.

Cemex is a cement company based in Garza Garcia, Mexico.

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