Texas Industries Inc. (TXI) announced a tender offer to buy back US$550m of notes maturing in 2013 as the cement company plans to sell US$600m of 10-year debt to fund the deal.
The company, whose main business is in Texas and California, joins a roster of firms looking to refinance debt with fresh borrowings as interest rates are near record-low levels.
Under the tender offer, Texas Industries offers to pay $1,020.63 for each $1,000 of the notes, including a $20 early tender bonus. The notes carry a 4.25% coupon.
The 10-year notes Texas Industries plans to sell will be available to just qualified institutional buyers and investors outside the U.S.
The company last week said its fiscal fourth-quarter loss narrowed following prior-year write-downs as shipments stabilized for the first time in more than two years.