Cleary Gottlieb cements Cemex $1bn debt offering

Cleary Gottlieb has represented the initial purchasers in a $1 billion high-yield global debt offering by Mexican cement giant Cemex.

The purchasers included BBVA, Citigroup, Credit Agricole CIB, JP Morgan, BofA Securities, HSBC, ING, and Mizuho Securities.

The transaction consisted of an offering of $1 billion 7.375 per cent senior secured notes due 2027 issued and sold by Cemex, and guaranteed by several subsidiaries of Cemex located in Mexico, the US, the UK, 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 law firm said.

The offering was conducted as a private placement under Rule 144A of the Securities Act of 1933 and outside of the US in reliance on Regulation S.

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.