Cemex Eases On ABS Price Talk

Price talk for Cemex’s new local asset backed bonds is being heard at 100bp-130bp over TIIE as the Mexican cement company prepares to raise up to MXN2.8bn ($239m) on August 4. Price talk is 50bp higher than TIIE+80bp whispers quoted to investors last month, but still at least 70bp below the minimum of TIIE + 200bp some investors had been seeking to participate. The bond is backed by account receivables and carries a tenor that is slightly over 4-years, with proceeds slated for debt refinancing. The new bonds are structured similarly to Cemex’s MXP2.2bn of account receivable backed bonds due December 2011 which were priced at TIIE + 250bp in 2009 and saw some MXP2.86bn in demand. Proceeds from the upcoming issue are partly going to refinance the existing 2011s and for working capital. The new bonds are expected to carry a local mxAAA rating. Ixe is sole lead.