CEMEX’s $1 Billion High-Yield Global Bond Offering

Cleary Gottlieb represented initial purchasers BNP Paribas, BofA Securities, J.P. Morgan, HSBC, IMI – Intesa Sanpaolo, ING and Santander in a high-yield global debt offering by CEMEX.

The transaction consisted of an offering of $1 billion 5.200% senior secured notes due 2030 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 September 14, 2020, and closed on September 17, 2020.

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 representing the initial purchasers included partners Duane McLaughlin (Picture) and Manuel Silva, associate Juliette Todd, and law clerk Eric Finkelberg. Partner Jason Factor, senior attorney David Stewart Fisher, and law clerk Zhiyuan Zuo provided tax advice.

Involved fees earner: Jason Factor – Cleary Gottlieb Steen & Hamilton; Duane McLaughlin – Cleary Gottlieb Steen & Hamilton; Manuel Silva – Cleary Gottlieb Steen & Hamilton; David Stewart Fisher – Cleary Gottlieb Steen & Hamilton; Juliette Todd – Cleary Gottlieb Steen & Hamilton;

Law Firms: Cleary Gottlieb Steen & Hamilton;

Clients: Banca IMI; Bank of America Securities; BNP Paribas; HSBC; ING Bank; J.P. Morgan Securities LLC; Santander;

Author: Ambrogio Visconti