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]
When we last left our hero, Count Vikula, he was prepared to deliver a scintillating summary on “the role of banking in society and the future of the industry, its supervision, its structure and its reputation and explains his work to reinvent the world’s most global financial services company and his vision for the New Reality.”
In case you missed it, you can still bask in glow of the Vik’s genius here: Deep Thoughts From Vikram Pandit.
Earlier: You Missed Your Excuse To Be In Beautiful London In March
And you thought you would never hear the juvenile chanting of “We’re #1, We’re #1!” coming from those halls again. Well, for all you naysayers: in your face. Not only is Vikula Castle bustling with activity and life, but the place is on fire. (No, no, we meant figuratively. No, not that kind of… nevermind).
See, far from taking the present populist slings and downward return arrows of fortune on their haunches, the peasants of Vikula have been toiling away in the muddy fields growing gold.
Citigroup grabbed the top spot on the mergers and acquisitions league table as of the beginning of March, according to data from Thomson Reuters.
The beleaguered and bailed-out bank advised on $138.3 billion worth of deals so far this year, edging out second-place Morgan Stanley, which rang up $136.2 billion.
In M&A, at Least, Citi Is on Top [Dealbook]
Today could be the day, people.
First commenter to guess the date and time of the buck breaking will win… well, we aren’t sure yet. Maybe a “Don’t Short Me, Bro!’ mug.
You’ve got to beat it by 10 minutes people, I mean c’mon.
$1.19 at the moment. Not far now.
Does anyone else find it interesting that, while the Mets managed to seal their stadium naming deal with Citibank, the Yankees are shit out of luck?
The Yankees and troubled Bank of America have ended talks for a major sponsorship deal for the new Yankee Stadium.
The Yankees were reportedly close to a lucrative signature sponsorship deal with the Charlotte, N.C.-based bank in September that would have approached the $20 million per year Citigroup has agreed to pay the Mets for naming rights to Citi Field.
[...]
Stadium sponsorship and other sports marketing deals by banks that have taken bailout money – such as Citigroup’s current 20-year, $400-million naming rights deal for Citi Field – have come under fire from some in Congress who see them as examples of corporate excess at taxpayers’ expense. Other lawmakers see these deals as legitimate business and marketing expenses.
Funny how that worked out, eh?
I’m going to resist the temptation to call Ken Lewis Barney Frank’s bitch, but you know that’s what’s on my mind. I mean really. What’s next? Taking away the tax deferral and capital gains advantages of carried interests in general partnerships?
Yankees, Bank of America end stadium sponsorship talks [Newsday.com]
No one likes a downer (well, how about: “only old WASP crones really appreciate the importance of a good downer.” I know several, many since expired, who raved against the Schedule I scheduling of Methaqualone in 1984. One even called her attorney and asked about lobbying against the decision. No, I’m really not kidding). Be this as it may, (we have to pander to our aged, female WASP readers, you understand) we are duty-bound to report to you that Citigroup has broken the “double buck.” Sure, this isn’t as exciting as “breaking the buck,” but, in light of Pandit’s graceful first-half-of-third-act performance, we could no sooner fail to cover this than ignore the slow sinking of the Titanic if we found ourselves on the scene for that disaster. (I personally would have thrown Billy Zane off of the lifeboat, but that is something of a personal matter).
So… do we have to put up a poll? Is anyone even remotely as torn about the prospects for NYSE:C as we?
I wonder why citibank.com is broken.
Update: Pandit plugged it back in.
Update: Pandit tripped over the plug again.
HT: guest.
