Cemex Preps Convertible Notes

Mexican cement maker Cemex plans to offer $500m in 2015 convertible notes due 2015. The deal, a part of its continuing bid to restructure debt and return to blue-chip status, may also feature a $75m overallotment. The notes, which will be unsecured and subordinate to existing and future senior debt, are convertible into Cemex ADS at a conversion rate to be determined at the time of pricing. It does not give an indication of timing, or who would manage the sale. In December, it sold MXP4.1bn in domestic bonds convertible into its CPO shares, to fund the repurchase of MXP4.1bn in various local bonds. Cemex also last year renegotiated $15bn in bank debt, made a major asset sale and raised $1.8bn in equity. It then sold $1.25bn in 2016 bonds in December, reopening the issue for another $500m in January, and EUR350m in bonds in December.