Cemex SAB, the largest cement maker in the Americas, increased its convertible bond sale by more than $200 million and set the conversion price at a 30 percent premium to yesterday’s close of its American depositary shares.
Cemex will sell $800 million of 3.25 percent convertible notes due in 2016 and $600 million of 3.75 percent bonds that mature in 2018, the Monterrey, Mexico-based company said today in a statement. The notes will have an initial conversion price equivalent to $11.28 per ADS. The U.S. shares closed at $8.68 yesterday.
Cemex said earlier this week it would sell $600 million in each issue. An overallotment option granted to the managers of the sales may increase the amount of 2016 notes by $177.5 million and the 2018 bonds by $90 million, according to the statement. That option had earlier been set at $90 million each.
The cement maker said it expects the offerings to close on March 15. The company plans to pay about $187 million for a cap on the share-price conversion rate. The cap for the 2016 notes is at a 90 percent premium to the closing share price on March 9 and 110 percent for the 2018 bonds.
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