Cemex’s $1 Billion Global Bond Offering

Cleary Gottlieb Steen & Hamilton advised the initial purchasers on the deal.

CEMEX executed its high-yield global debt offering, consisting 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.

Initial purchasers for the offering were BBVA, Citigroup, Credit Agricole CIB, J.P. Morgan, BofA Securities, HSBC, ING and Mizuho Securities.

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. CEMEX primarily engages in the production, distribution, marketing, and sale of cement, ready-mix concrete, aggregates, and clinker.

The Cleary capital markets team advising the initial purchasers included partners Duane McLaughlin (Picture) and Manuel Silva, associates Juliette Todd and Jose Andres de Saro, and law clerks Brayan Acevedo Vazquez and Eric Finkelberg. Partner Jason Factor, associate Michael Eis, and law clerk Zhiyuan Zuo provided tax advice.

Involved fees earner: Jose Andres de Saro – Cleary Gottlieb Steen & Hamilton; Michael Eis – Cleary Gottlieb Steen & Hamilton; Jason Factor – Cleary Gottlieb Steen & Hamilton; Duane McLaughlin – Cleary Gottlieb Steen & Hamilton; Manuel Silva – Cleary Gottlieb Steen & Hamilton; Juliette Todd – Cleary Gottlieb Steen & Hamilton;

Law Firms: Cleary Gottlieb Steen & Hamilton;

Clients: Bank of America Securities; BBVA Securities Inc.; Citigroup Inc.; Crédit Agricole Corporate and Investment Bank; HSBC; ING Bank; J.P. Morgan Securities LLC; Mizuho Securities;

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Author: Ambrogio Visconti