Cemex Grows Convert Sale

Mexican cement maker Cemex has raised $650m from the sale of convertible bonds, clinching more than the announced $500m, while tightening the price. The 2015 optionally convertible securities pay a coupon of 4.875% and are convertible immediately in to ADSs at a 30% premium to the March 24 closing price of $10.46. Price talk had initially been 5.25%-5.75%, and a conversion premium of 27.5%-32.5%, according to a banker on the deal. The tightening comes on the back of demand amounting to 5x-6x the offer. The deal is the latest in a long line of transactions aimed at reducing Cemex leverage. It follows a December sale of 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. Citi was global coordinator on the convertible transaction, with Bank of America, Barclays, BBVA, BNP, HSBC, JPMorgan, RBS and Santander as bookrunners.