CEMEX’s $1 Billion Global Bond Offering
June 5, 2020
Cleary Gottlieb represented the initial purchasers, including BBVA, Citigroup, Credit Agricole CIB, J.P. Morgan, BofA Securities, HSBC, ING, and Mizuho Securities, in a high-yield global debt offering by CEMEX.
The transaction consisted of an offering of $1 billion 7.375% senior secured notes due 2027 issued and sold by CEMEX, and guaranteed by several subsidiaries of CEMEX located in Mexico, the United States, the United Kingdom, Spain, France, the Netherlands, and Switzerland.
CEMEX intends to use the proceeds of the offerings for general corporate purposes, including to repay existing indebtedness. The offering was conducted as a private placement under Rule 144A of the Securities Act of 1933 and outside of the United States in reliance on Regulation S. The transaction priced on June 2, 2020, and closed on June 5, 2020. The offering is one of the first emerging market high-yield issuances since the outbreak of the COVID-19 pandemic.
Cleary has been counsel in a number of CEMEX-related matters, including as counsel to the bank steering committees in CEMEX’s restructuring of approximately $15 billion of its debt in 2009 and further restructuring of approximately $7 billion in 2012. Since 2009, Cleary has acted as counsel to initial purchasers in the issuance of approximately $20.5 billion in high-yield bonds and convertible debentures by CEMEX.
CEMEX is one of the largest cement companies in the world based on annual installed cement production capacity and one of the largest ready-mix concrete companies worldwide. It primarily engages in the production, distribution, marketing, and sale of cement, ready-mix concrete, aggregates, and clinker.