Cemex plans to issue US$1bn in junk bonds to help pay down debt, the company said late Tuesday.
The company will price the senior secured notes due 2018 by January 11. Price talk on the notes indicates a coupon of 9% and an OID of 99.36. Cemex said it would use the proceeds for general corporate purposes, which could include repayment of outstanding debt
Standard & Poor’s assigned a B rating to the proposed bonds. The rating agency also affirmed the company’s B corporate credit rating.
Last year Cemex issued $1.5 billion in 9.25% senior notes due 2020 and in 2009 priced US$1.25bn in 9.5% senior notes due 2016. The company also has several tranches of peso and euro-denominated bonds.