By Paul A. Harris
Portland, Ore., March 25 - Mexico's Cemex, SAB de CV priced two tranches of senior secured notes (expected ratings /B+/BB-) on Tuesday, according to a market source.
The deal included a $1 billion tranche of 10-year notes, which priced at par to yield 6%.
The yield printed at the tight end of the 6% to 6 1/8% yield talk, which had been revised from earlier talk in the 6 3/8% area.
Proceeds will be used to fund a tender offer for a portion of Cemex Spain's 9¼% senior secured notes due 2020 and Cemex's 9% notes due 2018, and for general corporate purposes, including payment of other debt.
Cemex also priced an upsized €400 million tranche of seven-year notes at par to yield 5¼%.
The tranche was upsized from €300 million.
The yield printed at the tight end of the 5¼% to 5 3/8% final yield talk, which had been revised from earlier talk in the 5½% area.
Proceeds from the euro-denominated notes will be used to take out the remaining $130 million of Cemex's 9 5/8% senior secured notes due 2017 and the remaining $115,346,000 of Cemex Spain's 8 7/8% senior secured notes due 2017, and for general corporate purposes, including payment of other debt.
Joint bookrunner Citigroup Global Markets will bill and deliver for the dollar-denominated tranche. Joint bookrunner J.P. Morgan will bill and deliver for the euro-denominated tranche.
Credit Agricole CIB, HSBC and Santander were also bookrunners.
Cemex is a multinational building products company with headquarters in San Pedro Garza Garcia, Mexico.
| Issuer: | Cemex Finance LLC (Cemex, SAB de CV)
|
| Securities: | Senior secured notes
|
| Bookrunners: | Credit Agricole CIB, Citigroup, HSBC, JPMorgan, Santander
|
| Trade date: | March 25
|
| Settlement date: | April 1
|
| Expected ratings: | Standard & Poor's: B+
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Quick to market
|
|
|
| Dollar-denominated notes
|
| Amount: | $1 billion
|
| Maturity: | April 1, 2024
|
| Bill and deliver: | Citigroup
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| First call: | April 1, 2019 at 103
|
| Price talk: | 6% to 6 1/8%, revised from 6 3/8% area
|
|
|
| Euro-denominated notes
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| Amount: | €400 million, increased from €300 million
|
| Maturity: | April 1, 2021
|
| Bill and deliver: | JPMorgan
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| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5¼%
|
| Call protection: | Three years
|
| Price talk: | 5¼% to 5 3/8%
|
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