Cemex offer period in exchange of convertibles for certificados bursatiles to run to Dec. 9

By Jennifer Chiou

New York, Nov. 12 - Cemex, SAB de CV announced that its exchange in which it will offer mandatorily convertible securities for outstanding certificados bursatiles will continue until Dec. 9.

The offer began on Nov. 11 after the company received approval and involves an anticipated minimum Ps. 3 billion of new securities that will convert into 114.5 million certificados de participacion ordinaria (CPO).

As already reported, the conversion price will be set using 1.62 to 1.65 times the volume-weighted average price of the existing CPOs for the 10 trading days before the closing of the offer.

The mandatories will pay a 10% coupon and mature after 3,640 days, about 10 years.

Mandatory conversion will be triggered by the CPOs reaching a threshold price or at maturity. Holders will also be able to convert voluntarily on interest payment dates after the first year.

Cemex will not see any cash proceeds.

When the company announced plans for the offer on Nov. 4, it said it filed a registration statement with the Comision Nacional Bancaria y de Valores.

Cemex is a Monterrey, Mexico-based building materials company.

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