(Reuters) - Mexico's Cemex, one of the biggest cement makers in the world, has agreed to a new deal with creditors to push back debt payments and is considering fresh asset sales as it wraps up a $7.2 billion refinancing.
Nearly all of Cemex's creditors supported an umbrella refinancing deal, which also includes a debt swap, a $1 billion prepayment and revised financial covenants, giving the company a breather of up to four more years to meet its obligations.
As part of the plan, Monterrey-based Cemex said on Monday it would exchange $500 million worth of debt for new, 9.5 percent senior secured notes that mature in 2018, adding that the new instruments were oversubscribed.
Cemex was swamped by the 2008 U.S. housing meltdown shortly after paying out about $16 billion to buy Australian peer Rinker.
It has been working its way out of deep debt obligations for the past three years. Chief Executive Lorenzo Zambrano, who has headed the company since 1985, has been under pressure and has sought to reassure investors that the former emerging market darling can reduce its debt burden.
Cemex shares plunged to 13-year lows last October on doubts over whether Zambrano could turn around the company's finances.
However, Cemex stock soared to its highest level in a year and a half last month after creditors agreed to the debt swap, and since then has eased off only slightly.
The company is now looking to sell a minority stake in its Cemex Latin American unit on the Colombian stock market, although details are still scarce.
According to IFR, the Mexican company has hired Citi, BBVA and Santander to act as bookrunners of the deal.
Cemex's vice president of finance, Jose Antonio Gonzalez, told Reuters on Monday that the company was considering selling other undisclosed assets, beyond the Colombia listing, to raise more cash.
Cemex has committed to paying down $1 billion in debt by the end of March 2013 as part of the broader refinancing. Analysts believe the Colombian sale will allow the company to cover most, or all, of that pay-down, lifting concerns over its liquidity situation.
Post-refinancing, Cemex's 2014 debt maturities will total just under $1.5 billion, Gonzalez added.
Cemex shares were down 0.3 percent at 10.44 pesos in Monday midsession trade, while its New York-traded stock was down 1 percent at $8.01.
reuters.com
Nearly all of Cemex's creditors supported an umbrella refinancing deal, which also includes a debt swap, a $1 billion prepayment and revised financial covenants, giving the company a breather of up to four more years to meet its obligations.
As part of the plan, Monterrey-based Cemex said on Monday it would exchange $500 million worth of debt for new, 9.5 percent senior secured notes that mature in 2018, adding that the new instruments were oversubscribed.
Cemex was swamped by the 2008 U.S. housing meltdown shortly after paying out about $16 billion to buy Australian peer Rinker.
It has been working its way out of deep debt obligations for the past three years. Chief Executive Lorenzo Zambrano, who has headed the company since 1985, has been under pressure and has sought to reassure investors that the former emerging market darling can reduce its debt burden.
Cemex shares plunged to 13-year lows last October on doubts over whether Zambrano could turn around the company's finances.
However, Cemex stock soared to its highest level in a year and a half last month after creditors agreed to the debt swap, and since then has eased off only slightly.
The company is now looking to sell a minority stake in its Cemex Latin American unit on the Colombian stock market, although details are still scarce.
According to IFR, the Mexican company has hired Citi, BBVA and Santander to act as bookrunners of the deal.
Cemex's vice president of finance, Jose Antonio Gonzalez, told Reuters on Monday that the company was considering selling other undisclosed assets, beyond the Colombia listing, to raise more cash.
Cemex has committed to paying down $1 billion in debt by the end of March 2013 as part of the broader refinancing. Analysts believe the Colombian sale will allow the company to cover most, or all, of that pay-down, lifting concerns over its liquidity situation.
Post-refinancing, Cemex's 2014 debt maturities will total just under $1.5 billion, Gonzalez added.
Cemex shares were down 0.3 percent at 10.44 pesos in Monday midsession trade, while its New York-traded stock was down 1 percent at $8.01.
reuters.com
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