By Reshmi Basu
New York, Dec. 12 - Cemex SA de CV sold a $1.25 billion two-part offering of dollar-denominated perpetual callable bonds (/BBB-/BBB), according to a market source.
The deal was structured as fixed-to-floating-rate securities. The $350 million tranche of perpetual securities priced to yield 6.196% and will be callable on Dec. 31, 2011.
The other tranche of $900 million in perpetual securities came at a yield of 6.722% and will be callable on Dec. 31, 2016.
Additionally, there is a step-up for both tranches. The coupon will remain fixed until the call date, then the coupon will change to a floating rate and will step up to three-month Libor plus the sum of the Libor equivalent spread at the time of pricing plus 300 basis points.
Barclays Capital and JP Morgan were lead managers for the Rule 144A and Regulation S transaction.
The issuer is a cement company based in Garza Garcia, Mexico.
| Issuer: | Cemex SA de CV
|
| Issue: | Two-part offering of perpetual bonds
|
| Total amount: | $1.25 billion
|
| Lead managers: | Barclays Capital, JP Morgan
|
| Distribution: | Rule 144A/Regulation S
|
| Ratings: | Standard & Poor's: BBB-
|
| Fitch: BBB
|
| Tranche A
|
| Amount: | $350 million
|
| Issue: | Fixed to floating-rate securities
|
| Maturity: | Perpetual
|
| Yield: | 6.196%
|
| Call option: | Callable on Dec. 31, 2011
|
|
|
| Tranche B
|
| Amount: | $900 million
|
| Issue: | Fixed to floating-rate securities
|
| Maturity: | Perpetual
|
| Yield: | 6.722%
|
| Call option: | Callable on Dec. 31, 2016
|
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