Mexican cement firm Cemex (NYSE: CX) is due to launch a US$1.2bn bond issue consisting of US$600mn in convertible subordinated notes due 2016 and US$600mn in notes due 2018.
The notes will be convertible into Cemex's American depositary shares, based on conversion rates to be determined, according to a press release.
Cemex also intends to enter into capped call transactions with financial institutions, which aim to help reduce costs when the notes are converted into shares.
The company said it will use net proceeds from the offering to fund the purchase of the capped call transactions and to repay debt.
Cemex, Mexico's largest cement producer, has struggled to pay back debt since its acquisition of Australian firm Rinker in 2007. The company's net debt at end-2010 was US$17.1bn.