CEMEX announces US$350 million U.S. commercial paper program
August 12, 1996
CEMEX, S.A. de C.V. (OTC:CMXBY) and Bank of America today announced the conclusion of the syndication of a one-year US$350 million U.S. Commercial Paper Program for CEMEX, a multinational company which accessed the U.S. Commercial Paper market for the first time in 1993 with a US$100 million dollar program has become a very active and prestigious issuer. The structure of the program allows CEMEX paper to obtain an investment grade of A1/P1. The company will use the proceeds of the commercial paper issuance to refinance its short-term obligations. CEMEX is one of the three world´s largest cement producer with operations in 23 countries and trading activities in more than 60 countries. Bank of America acts as arranger and administrative agent on the transaction.
CEMEX Planning and Finance Director Gustavo Caballero said, "The multinational presence of CEMEX allows us to offer a diversified risk and positions us as an attractive option. The confidence, interest, and support offered by the international banks demonstrate that our globalization and diversification strategies have been effective."
Vice President Lorenzo Gonzalez Bosco, Business Director of Bank of America in Mexico, said, "This program demonstrates Bank of America´s ongoing commitment to a strong multinational corporation, and our ability to assemble a large number of foreign banks to support CEMEX´s financial requirements." He described the bank´s success in arranging this transaction as "a sign of confidence in CEMEX´s mid and long term business strategies."
Bank of America´s Latin America Corporate Finance team and Monterrey Representative Office structured and syndicated the transaction among 20 international banks: Bank of America NT&SA; Chase Bank; Midland Bank plc; Credit Suisse; Union Bank of Switzerland; BHF Bank A.G.; Internationale Nederlanden (U.S.) Capital Corporation; Bayerische Vereins Bank; Bayerische Landes Bank; Royal Bank of Canada; Bank of Montreal; Societé Générale; Dresdner Bank; Swiss Bank; Real-West CB Group; ABN-AMRO Bank N.V.; Banque Nationale de Paris; Banque Francaise Du Commerce Exterieur; Banca CRT and Monte De Paschi de Sienna.
The commercial paper will be supported by a letter of a credit issued by Credit Suisse, BA Securities, Inc., the securities subsidiary of BankAmerica Corporation, and Chase Securities will be co-dealers for the commercial paper. It will be sold to U.S. institutional investors, including money market funds, insurance companies, banks, and corporations. BA Securities, Inc. has been a U.S. commercial paper dealer for CEMEX since 1993.