Cemex to retire euro notes via new issue, may also redeem dollar notes

By Susanna Moon

Chicago, March 25 - Cemex, SAB de CV said it plans to retire two series of euro-denominated notes and possibly two series of dollar-denominated notes using proceeds of new note issues.

The company plans to redeem its €130 principal amount of outstanding 9 5/8% senior secured notes due 2017 and the €115,346,000 principal amount of outstanding 8 7/8% senior secured notes due 2017 issued by Cemex Espana, Luxembourg branch.

Funding for the redemption will come from the planned issue of senior secured notes in one or more series denominated in euros, according to a company press release.

Remaining proceeds will be used for general corporate purposes, including the repayment of debt.

If dollar notes are issued, the proceeds will be used to purchase some of the 9¼% senior secured notes due 2020 issued by Cemex Espana, Luxembourg branch and the 9% senior secured notes due 2018 issued by Cemex.

The purchase price for each $1,000 principal amount would be about $1,102.50 for the 9¼% notes and $1,092.50 for the 9¼% notes plus accrued interest.

The euro notes and any dollar notes would share in the collateral pledged for the benefit of the lenders under Cemex's facilities agreement.

Cemex is a Monterrey, Mexico-based building materials supplier and cement producer.

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