Cemex to issue at least US$225m in securities

Cemex to issue at least US$225m in securities
Published: 05 November 2009

Cemex said on Wednesday it plans to issue at least MXP3bn (US$225m) in convertible securities in Mexico as part of its debt refinancing.

Cemex convinced its creditors to refinance $15 billion in bank and bondholder debt until 2014, but has agreed to sell assets and raise capital via equity and bond issues.

Under the terms of the deal, Cemex will issue 10-year commercial paper that will be converted into shares.

Cemex did not give a date for the issue, which must come after the Mexican stock exchange approves the deal. The company says it aims to use the new paper to replace outstanding debt in Mexico.

The company said it aims to attract Mexican pension funds.

"The transaction is expected to be launched for a minimum amount of securities of 3.0 billion Mexican pesos that will be mandatorily convertible into approximately 114.5 million CPOs," said Cemex in a statement. CPOs are shares on the Mexican bourse.

"However, Cemex may issue securities mandatorily convertible into a maximum amount of 400 million CPOs," the statement said.