HeidelbergCement to bring high-yield notes

By Paul A. Harris

St. Louis, May 27 - HeidelbergCement AG announced Tuesday a bond deal and syndicated loan to be completed sometime in June or July 2003. The company's existing senior unsecured debt ratings are Ba1/BB+.

"HeidelbergCement will refinance existing liabilities, improve its financial flexibility and continue to utilize competitive advantages and growth opportunities related thereto," the press release stated.

In addition to the bond and loan, the Heidelberg, Germany company plans to raise €400 million in a rights offering to shareholders.

Announcing the capital increase, the company said a major shareholder has undertaken to take up a large portion of the transaction if other shareholders do not exercise their subscription rights. It also noted firm subscription undertakings have already been given by other major shareholders.

HeidelbergCement also said the negotiations to refinancing the two outstanding syndicated loans of €700 million and €700 million through a new syndicated loan are at "a very advanced stage." The company expects to complete them in June or July. It expects to issue the bond at the same time.

No amount, structure or underwriter names for the bond deal were included in the press release.

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