Cemex to cut debt by US$437m with perpetual bond swap
Cemex said Monday that its offer to swap perpetual bonds for new notes will result in a reduction of around US$437m in overall debt.
Cemex said in a press release that it will issue US$1.07bn in new 10-year senior secured notes, and EUR115.3m in new seven-year senior secured notes to replace the perpetuals that were tendered by Friday’s deadline.
Investors tendered US$202.1m, or 58%, of outstanding 6.196% dollar perpetuals; US$381.1m, or 51%, of 6.640% dollar perpetuals; US$451.1m, or just over 50%, of its 6.722% dollar perpetuals; and EUR463.9m, or 64%, of outstanding euro-denominated 6.277% perpetual notes, according to Cemex.
The new dollar notes will pay annual interest of 9.25% and are callable after five years, while the euro-denominated notes pay annual interest of 8.875% and are callable after four years.
Cemex has been continuing with debt management and reduction efforts since it refinanced US$15bn in mostly bank debt in 2009 Published under Cement News
