Cemex sets $250M stock rights offer

    53
    Fund-raising. Cemex will use the proceeds to finance the expansion of its Solid Cement plant.
    Fund-raising. Cemex will use the proceeds to finance the expansion of its Solid Cement plant.

    Cemex Holdings Philippines Inc. said it expects to complete its stock rights offer by next year where it looks to raise as much as $250 million.

    The company intends to have the offer held between January 20 to 24, 2020, after setting the price “at a discount to the volume-weighted average price” of Cemex for a period to be determined prior to Jan. 6, 2020.

    Cemex is offering to shareholders of record by Jan. 14, 2020, a total of 13.114 billion shares.

    Cemex has appointed The Hongkong and Shanghai Banking Corp. Ltd., Singapore Branch as global coordinator and BDO Capital & Investment Corp. as domestic underwriter.

    The net proceeds from the offer will be used primarily to fund the expansion of Cemex’s Solid Cement plant, including the payment for a revolving credit facility tapped by Solid Cement from CEMEX Asia B.V.

    The six-year $75-million credit facility was tapped by Solid Cement, which is Cemex’s Muzon cement arm, from CEMEX Asia in November 2018. It was later raised to $100 million in February this year.

    Cemex said the outstanding balance under the Solid expansion facility agreement was at $93.3 million, which can change once the proceeds of the offer are received and available to be used.

    Cemex said the new production line in the Solid Cement plant will commence operations by the second quarter of 2021, expanding the installed annual capacity of the Solid Cement facility by 1.5 million tons.

    Cemex has an aggregate installed annual capacity of 5.7 million tons of cement as of end-September.

    The APO Cement plant in Cebu currently has three grinding lines with an installed annual capacity of 3.8 million tons of cement and serves customers in the Visayas and Mindanao, and to some extent the Luzon region.

    The Solid Cement plant in Rizal currently has three grinding lines with an installed annual capacity of 1.9 million tons of cement. Cemex is currently expanding the plant with a new integrated cement production line with an additional installed annual capacity of 1.5 million tons.

    The Solid Cement plant serves the Luzon region.

    Cemex has five marine distribution terminals and 16 land distribution centers around the country.