Loma Negra To Issue $100 Million Bonds

Argentine cement-maker Loma Negra is to issue $100 million of bonds to help refinance debt and increase working capital. The bonds are due in 2013 and will likely yield between 9% and 9.25%, slightly above the sovereign risk of 8.5%-8.75%, according to analysts. This is the first time the company has gone to the international capital markets since it was bought by Brazilian conglomerate Camargo Correa last year in a deal worth just over $1 billion. Correa plans to use the moneys raised to cancel Loma Negra’s remaining debt.