Cemex Swap Offer Falls on Deaf Ears

Cemex says it was able to extend maturities on only $72m of its upcoming short term debt. The cement maker offered investors $500m worth of local notes in the exchange, whose purpose it is to swap certificados bursatiles due December 2008, January 2009 and April 2009, for notes that mature in September 2011, explains a Cemex spokesperson. “This shows local investors aren’t willing to stick with the company for the long term,” says one Mexico-based analyst who asked not to be identified. “The company is rolling [over] its debt constantly which may not be cost effective,” he adds. About 75% of the new offering was designed to replace notes due in December and January. The new debt is guaranteed by Cemex and Empresas Tolteca. Cemex expects to pay the remaining $428m it didn’t manage to swap on time, it says. The analyst believes that if Cemex is unable to pay up, it may seek to refinance the amount due. Besides these notes, Cemex has some $3bn in long term debt due in December 2009.