Cemex plans to exchange as much as US$3bn of perpetual bonds for notes maturing in seven and 10 years as it seeks to lower debt-servicing costs.
The company plans to swap its dollar-denominated perpetual notes, which are subordinated, for senior notes worth about 72 cents on the dollar, Cemex said in an e-mailed statement today. It will exchange its euro notes for 68.75 cents.
The exchange may help Cemex save about US$750m, said Diego Torres, a debt analyst with ING Groep NV in New York. The company may lure bondholders because the new securities will offer them greater liquidity, Torres said. Cemex is seeking to reduce costs after reaching a US$15bn refinancing in August to avoid default.
“If you’re a short-term investor who is looking for liquidity, you’re going to swap your securities,” Torres said. “Cemex is giving investors a bond that has a set maturity, that’s higher on the capital structure and that has a fixed coupon.”