Cemex Sells $600 Million of 2019 Bonds to Yield 5.875 Percent

Cemex SAB, the largest cement maker in the Americas, sold $600 million of bonds due 2019 to yield 5.875 percent, according to data compiled by Bloomberg.

The company issued the senior secured notes, callable after three years, to pay 500 basis points over similar-maturity U.S. Treasuries, the data show. Bank of America Corp., Citigroup Inc., HSBC Holdings Plc and Banco Santander SA managed the transaction, according to a person familiar with the offer who asked not to be identified because he’s not authorized to speak publicly.

Monterrey, Mexico-based Cemex said in a statement to the London Stock Exchange today that it plans to buy back as much as 200 million euros ($259 million) of bonds due in 2014 with a 4.75 percent coupon. There are 430 million euros of the notes outstanding, according to data compiled by Bloomberg.

The last time Cemex raised money abroad was in October with an offering of $1.5 billion of 2022 bonds. The securities have rallied since the sale, sending yields down 2.46 percentage points to 6.91 percent, according to data compiled by Bloomberg.

Cemex is the first Mexican company to sell debt overseas since Standard & Poor’s changed the outlook for the Latin American country’s sovereign credit rating to positive from stable on March 12. S&P rates Mexico BBB, or two levels above junk.

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