Cemex holders to convert $280 million 4.875% convertibles due 2015

By Susanna Moon

Chicago, March 3 - Cemex, SAB de CV said it expects holders to convert about $280 million of its 4.875% convertible subordinated notes due 2015 in exchange for about 27.6 million American Depositary Shares.

The company will pay no cash to these holders for the conversions, according to a press release.

After settlement, about $435 million of the notes will remain outstanding. The notes are not callable prior to maturity in March 2015.

"This transaction contributes to the strengthening of our capital structure," Fernando A. Gonzalez, executive vice president of finance and administration and chief financial officer, said in the press release.

"It supports our stated objectives of reducing debt and interest costs and reduces our short term contingent refinancing requirements."

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

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