Morning Commentary: Cemex’s new notes upsized, coming tight to talk; market tone positive

By Rebecca Melvin

New York, Nov. 28 – Final pricing of Cemex SAB de CV’s upsized offering of seven-year notes was expected to occur Tuesday, and investors were also watching for word on the planned Alibaba Group Holding Ltd. notes, for which investor calls were wrapping up on Tuesday.

Cemex announced a deal early Tuesday for €400 million of seven-year notes, which are non-callable for three years. The offering was upsized to €650 million and the yield set at 2¾%, which was tightened from initial talk at 3¼% area.

The deal was being sold from syndicate desks based in London.

Meanwhile, Alibaba was selling three tranches of Securities and Exchange Commission-registered notes via joint bookrunners Morgan Stanley, Citigroup, Credit Suisse, Goldman Sachs (Asia) LLC and JPMorgan. Co-managers are ANZ, BNP Paribas, DBS Bank Ltd. HSBC and ING.

Market tone was positive, a market source said, as investors eyed the U.S. Senate Banking Committee confirmation hearing taking place on Tuesday for nominee Jerome Powell to become the next Federal Reserve chair. His opening comments suggested a continuation of the current Fed policy under current chair Janet Yellen.

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