Cemex Prices $750 Million Perpetual Bond

Mexican cement maker Cemex priced a $750 million perpetual, non-call 8 bond yesterday at par to yield 187 basis points over comparable U.S. Treasuries. The transaction was tightened from 190 basis points over as orders exceeded $3 billion, according to bankers close to it. Cemex apparently went out initially looking for $500 million. The 6.64% coupon bonds step up to Libor+440bp in year 8. Proceeds will be used to pay for an eventual acquisition of Rinker, based in Australia, a hostile takeover which could happen as early as March, according to recent filings. If the deal falls through, the cash will be used to refinance existing debt. Barclays and JPMorgan were joint leads on the transaction, which settles February 12. Fitch rates it BBB.