Today, a story that likely will be repeated again and again (just change the names). It's not just residential mortgage credit that is drying up (again).
Cemex said Monday that it is in talks with its core banks to renegotiate the majority of its outstanding debt, or about $14.5 billion in syndicated and bilateral obligations. The cement maker also said it is postponing its previously announced capital markets debt financing. Cemex said it intends to "meet all its obligations across both bank and capital markets debt" and "will continue to consider other strategies including asset sales."
The rumor mill is a bit less optimistic. Specifically, that recent bond offerings went from $1 billion to $200 million with 20% yields to "...well, maybe it's better if we issue debt at some later date." Fortunately, the equity is still trading at $4.00. Optimism reigns.
A little bird wonders how much Cemex debt Citi has on its books considering that any of the traded loan facilities are floating at about $0.50.
Cemex in talks with core banks to renegotiate debt [Marketwatch]
Posted by guest , Mar 09, 2009 11:57AM
Cash is king for companies too. Tech learned from the tech bubble, look how much cash the tech companies have.
Posted by Seaman Bodine II , Mar 09, 2009 1:16PM
Gee - I thought after the Obamaist purges later this year, Cemex would be printing money, as the US converts off asphalt in favor of cement highways. Isn't the Great Eloquent Comrade going to make a bunch of roads and bridges, paying 20+ an hour to ambitious inner city crackheads?
Maybe the Great Aerobic Workout Being is planning to cripple the firm prior, and get the Krauts to take it over, for a better deal, as we all end up with one currency in the new Pan-European Union.
Posted by Anal_yst , Mar 09, 2009 1:28PM
"Ok we'll hook you up with a $xxBN short-term bilateral bridge, but you HAVE to go to market and refi the bastard ASAP, ok, I have your word? Ok, yea, don't worry I'm 100% certain you won't have any problem what-so-ever syndicating this thing, I mean you're CEMEX (!), everyone loves you guys, and come on, look at World demand for your producs, through the freakin roof!"
Posted by guest , Mar 09, 2009 8:08PM
Seaman,
We get it. You don't like Obama. Now fuck off with your bitter commentary.
Posted by guest , Mar 09, 2009 8:58PM
Cemex was always too large. Anyone exposed to the cement business knows that they have been the short of the year.
Invest in a player who has lots of cash and a history of sheer brilliance.
Hint: This company is in Egpyt
Posted by stimpy tec , Mar 09, 2009 10:49PM
@5 is it Imhotep Construction Company, Third Dynasty Group?