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]