Grupo Cementos de Chihuahua (GCC) a leading cement producer in markets where it competes in Mexico, the United States and Bolivia, today announced the successful completion of a US$250m senior guaranteed notes issue in the United States Private Placement market. Barclays Capital acted as sole lead-agent.
The transaction, which marked the Company’s debut issue in this sector, received overwhelming demand and was increased from US$125m to US$250m based on an order book which was six times oversubscribed. Despite recent volatility in corporate and Mexican government bond sovereign trading levels in Mexico, the transaction priced well inside other highly rated Mexican corporates and at a small concession to the Mexican sovereign bonds.
GCC will use the proceeds to refinance bridge loans obtained for its May 1, 2006 acquisition of Mid-Continent Concrete Company, Inc. and Alliance Transportation, Inc., as well as to finance part of the investment in the new cement plant under construction in Pueblo, Colorado and to refinance the domestic bonds maturing in December 2006.