Cemex Sets Minimum on Local Swap

Cemex has set a minimum spread to be paid on the 2011 UDI and MXP-denominated bonds it is offering through a bond exchange offer launched two weeks ago. The Mexican multinational cement producer will pay a minimum spread of 225bp over the government’s 3-year UDIbonos for the UDI notes it is offering, and a minimum spread of the 28-day TIIE plus 200bp on the MXP notes included in the offer. The spread can be raised at Cemex’s discretion, and will be finalized at the close of the offer period, expected December 10. The Mexican multinational cement producer is offering the new notes to holders of MXP5.7bn worth of local bonds coming due in the next four months. The notes being tendered include UDI-denominated bonds paying 6.50%, 6.28% and 5.30%, and MXP-denominated notes paying 90-day Cetes plus 0.99%. The new notes are rated AA on a national scale. Banamex and BBVA Bancomer are managing the process.