Cemex SAB de CV (ADR) (NYSE:CX) Announces Pricing of €400 Million and $1 Billion Senior Secured Notes

by Patrice Washington | Tuesday, Apr 1, 2014 | 4368 views

Boston, MA 04/01/2014 (usastockreports) – Mexico Based cement manufacturing giant, Cemex SAB de CV (ADR) (NYSE:CX), has announced the pricing of €400 million of its 5% senior secure notes that will be due in 2021 as well as $1 billion of 6% of its senior secured notes that will be due in 2024.

Terms of the pricing

The senior secured notes priced in Euros will earn an annual rate of 5.20% annually and expected to mature in 2021, the notes will also be callable beginning April 1, 2017. The U.S dollar notes on the other hand will accrue an annual interest rate of 6% expected to mature on April 1, 2024, this notes will be callable beginning April 1, 2019.

Uses of the Proceeds

Net proceeds from the U.S dollar notes with additional cash will be used to purchase up to $1.08 billion aggregate principal amount of the company’s 9.250% senior secured notes that are due in 2020. Part of the proceeds will also be used to purchase 9% of the company’s senior secured notes that are due in 2018.

Cemex SAB de CV (ADR) (NYSE:CX) expects the purchase price for the 2020 notes to be approximately $1,102.50 for each of $1000 principal amount. The purchase price on the other hand for 2018 notes is expected to be $1,092.50 for each of $1000 principal amount.

Net proceeds from the Euro offering will be used to retire €130 million worth of principal amount for its 9.265% senior secured notes that are due in 2017. Part of the amount will also be used to retire €115,346,000 of its 8.875% senior secured notes that are due in 2017.

Cemex continues to be bullish in the market having reported improved earnings per share of 46.8% in the recent quarter earnings with the company having demonstrated a pattern a positive earnings over the past year. Its income growth has exceeded that of the industry average having grown by 47% from lows of $257.16 million to highs of $485.47 million.

Cemex SAB de CV (ADR) (NYSE:CX) remained slightly unchanged closing Monday trading session at $12.63 after moving up by 0.56%.

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