Mexican cement manufacturer Cemex (NYSE: CX) has announced the pricing of its offering of US$1bn in senior secured notes.
The bonds will be issued at a 99.4% discount of their face value and will be redeemable beginning on their fourth anniversary, Cemex said in a release. The notes will mature in 2018, yielding 9.0% annually.
The offering is intended to improve the company's debt maturity profile and reduce short-term refinancing risk. Proceeds may be used for repayment of debt, the release said.
The closing of the offering is scheduled for January 11. The notes may not be offered or sold in the US. Cemex Mexico, Cemex España and New Sunward Holding will guarantee the bonds.
Standard & Poor's assigned the offer a B senior secured debt rating.
Cemex has struggled to pay back debt following its acquisition of Australian firm Rinker in 2007. The firm's total debt plus perpetual notes rose by US$226mn in 3Q10.