Markets Await Cemex Results

Cemex is expected to announce the results of its offer to creditors as soon as today, following Monday’s deadline, as it seeks to extend maturities of $7bn in debt to 2017 from 2014. In a process launched last month, the Mexican cement maker is offering lenders an exchange of their current exposure into one or more of new 9.5% 2018 bonds, new loans paying Libor+525bp, new USD private placement notes paying 9.66%, or new yen-denominated private placement notes paying 7.735%. The interest rates on the loans and private placement notes reduce over time based on prepayment targets. The proposed 2018 bonds are capped at $500m, callable in 2016 and guaranteed by more than seven Cemex units. Participating creditors receive an exchange fee of 80bp, and a 50bp additional cash fee if the Cemex ADS exceeds US$14.50 during the 90 days after April 1, 2015. The offer is contingent upon acceptance from creditors representing at least 95% of existing exposures.