Cemex announced today that it commenced a global public offering of 1,200 million of its Ordinary Participation Certificates (CPOs), directly or in the form of American Depositary Shares (ADSs), plus up to an additional 180 million CPOs, directly or in the form of ADSs, to cover over-allotments.
Included in the offering are 595 million CPOs (directly or in the form of ADSs) that will be sold on CEMEX’s behalf by three of its subsidiaries. Of the 1,200 million CPOs being offered, it is expected that 900 million CPOs will be offered (directly or in the form of ADSs) in the United States and in other countries outside Mexico and approximately 300 million CPOs will be offered in a concurrent public offering in Mexico. The transaction is subject to market and other conditions.
J.P. Morgan, Citi, Santander Investment, and BBVA will act as global coordinators for the global offering. J.P. Morgan, Citi, Santander Investment, BBVA, BNP Paribas, HSBC, and RBS will act as joint bookrunning managers on the international offering. Acciones y Valores Banamex Casa de Bolsa, J.P. Morgan Casa de Bolsa, Casa de Bolsa BBVA Bancomer, Santander Casa de Bolsa, and HSBC Casa de Bolsa will act as bookrunning managers for the Mexican offering.
Cemex intends to use the net proceeds from the global offering to pay down debt as required by the financing agreement recently entered into with its creditors.