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Cemex holders tender $1.33 billion 9½% notes; no tenders to be accepted after early deadline
By Marisa Wong
Madison, Wis., Aug. 19 - Cemex, SAB de CV announced that holders of $1,329,378,000 of the 9½% senior secured notes due 2016 issued by Cemex Finance LLC tendered their notes by 5 p.m. ET on Aug. 16, the early tender date of Cemex's cash tender offer to purchase up to $925 million of the $1.75 billion outstanding 9½% notes.
Because the amount of notes tendered by the early tender date exceeded the offer cap, Cemex accepted $925 million of the early tendered note on a prorated basis. The proration factor is 67.139%.
Holders who tender after the early tender date will not have any of their notes accepted for purchase, the company said in a Monday press release.
Holders who tendered by the early deadline will receive the total consideration of $1,075 per $1,000 principal amount, which includes an early tender payment of $30.
The company will also pay accrued interest up to but excluding the settlement date, which is expected to be Aug. 19.
The total cash payment to purchase the notes will be about $1.01 billion, the release said.
The offer began on Aug. 5 and was set to expire at 11:59 p.m. ET on Aug. 30.
As previously noted, the tender offer is conditioned on the company receiving sufficient proceeds from a senior secured notes offering to pay for the tender offer and connected fees and expenses.
On Aug. 5 Cemex priced $1 billion of 6½% notes, and the deal settled on Aug. 12, as reported by Prospect News.
HSBC Securities (USA) Inc. (liability management group at 888 HSBC-4LM or 212 525-5552 or via email at liability.management@hsbcib.com) and J.P. Morgan Securities LLC (Latin America debt capital markets group at 866 846-2874 or 212 834-7279) are dealer managers for the tender offer. D.F. King & Co., Inc. (800 769-7666 or 212 269-5550) is the information agent and tender agent.
Cemex is a Monterrey, Mexico-based building materials supplier and cement producer.
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