Post by ukipa on Jul 28, 2011 20:42:15 GMT 4
Bonds sold by Cemex SAB, the largest cement maker in the Americas, are posting the biggest losses among major issuers of junk debt in the U.S. after the company posted its seventh straight quarterly loss.
Notes issued by Monterrey, Mexico-based Cemex have lost 3.5 percent this month, compared with an average return of 1.4 percent for the 50 biggest issuers of dollar debt rated below investment grade, according to Bank of America Corp. indexes. Yields on the company’s 9 percent bonds due in 2018 rose 122 basis points, or 1.22 percentage point, to 9.93 percent.
Cemex bonds are slumping as a slowing expansion in the U.S. reduces revenue and fuels concern the company will fail to meet debt level limits agreed to when it took out a $15 billion bank refinancing loan in 2009. The company struggled to drum up enough demand for a $650 million bond sale on June 23, prompting it to shelve the plan for two weeks before changing the terms and paying a premium of 97 basis points over its existing bonds.
Read full article...
www.bloomberg.com/news/2011-07-28/cemex-is-worst-junk-in-u-s-market-on-losses-mexico-credit.html
Notes issued by Monterrey, Mexico-based Cemex have lost 3.5 percent this month, compared with an average return of 1.4 percent for the 50 biggest issuers of dollar debt rated below investment grade, according to Bank of America Corp. indexes. Yields on the company’s 9 percent bonds due in 2018 rose 122 basis points, or 1.22 percentage point, to 9.93 percent.
Cemex bonds are slumping as a slowing expansion in the U.S. reduces revenue and fuels concern the company will fail to meet debt level limits agreed to when it took out a $15 billion bank refinancing loan in 2009. The company struggled to drum up enough demand for a $650 million bond sale on June 23, prompting it to shelve the plan for two weeks before changing the terms and paying a premium of 97 basis points over its existing bonds.
Read full article...
www.bloomberg.com/news/2011-07-28/cemex-is-worst-junk-in-u-s-market-on-losses-mexico-credit.html
Attachments:
