Fitch Rates CEMEX's US$750MM Perpetual Callable Debentures 'BBB'; Watch Negative.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch has assigned a rating of 'BBB', Rating Watch Negative to up to US$750 million of fixed-to-floating perpetual callable Callable Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. debentures (the debentures) to be issued by C8 Capital (SPV SPV sheeppox virus. ) Limited (the issuer). The debentures are perpetual with no fixed maturity date. Interest on the debentures due on any payment date may be deferred by the issuer indefinitely. The issuer is a special purpose vehicle incorporated with limited liability in the British Virgin Islands British Virgin Islands A British colony in the eastern Caribbean east of Puerto Rico and the U.S. Virgin Islands. Road Town, on Tortola Island, is the capital. Population: 21,700. Noun 1. and its only assets consist of up to US$750 million of perpetual dual currency notes (the dual currency notes) issued by New Sunward Holding Financial Ventures B.V. (NSHFV), which will be purchased by the issuer with proceeds from the debentures. The debentures will be secured by a first priority security interest in the dual currency notes. NSHFV is an indirect wholly owned special purpose subsidiary of CEMEX CEMEX Cementos Mexicanos , S.A.B. de C.V. (NYSE NYSE See: New York Stock Exchange : CX)(CEMEX). NSHFV's obligations under the dual currency notes will be unconditionally guaranteed on a joint and several basis by CEMEX and its subsidiaries CEMEX Mexico, S.A. de C.V. (CEMEX Mexico) and New Sunward Holding B.V. (New Sunward) (the guarantors). The dual currency notes will constitute senior unsecured obligations of each of the guarantors and will rank pari passu [Latin, By an equal progress; equably; ratably; without preference.] Used especially to describe creditors who, in marshalling assets, are entitled to receive out of the same fund without any precedence over each other. PARI PASSU. By the same gradation. upon liquidation with any other senior unsecured indebtedness of the guarantors. Proceeds from the dual currency notes will be used primarily to repay debt of CEMEX and its subsidiaries and for general corporate purposes. The rating is based on the credit quality of CEMEX and its subsidiaries CEMEX Mexico and New Sunward as guarantors. Fitch has foreign currency and local currency Issuer Default Rating (IDR IDR In currencies, this is the abbreviation for the Indonesian Rupiah. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) on CEMEX of 'BBB', Rating Watch Negative. On Oct. 27, 2006, Fitch placed CEMEX's ratings on Rating Watch Negative following the announcement that CEMEX intended to make a tender offer to acquire all of the outstanding shares of Australia-based Rinker Group Limited for US$12.8 billion in cash and the assumption of debt. The debentures are redeemable to the extent NSHFV redeems the dual currency notes. The dual currency notes may be redeemed at the option of NSHFV, in whole or in part, on Dec. 31, 2014 and each interest payment date thereafter. Interest payments on the debentures are deferrable to the extent NSHFV defers interest payments on the dual currency notes. NSHFV may not defer interest when CEMEX or any of its subsidiaries has declared a dividend or other distribution or payment in respect of any class of its share capital or interest on any other perpetual debt instrument similar to the dual currency notes. The rating assigned to the debentures is equivalent to CEMEX's foreign and local currency IDRs in line with Fitch's criteria for rating preferred stock and hybrid securities. Fitch has granted 0% equity credit to these securities. Neither the debentures nor the dual currency notes demonstrate loss-absorption due to their senior rank. Although coupons are deferrable, Fitch considers the likelihood of deferral remote given CEMEX's strong financial performance and credit profile. CEMEX is the third-largest cement producer in the world based on production capacity of approximately 97 million metric tons in more than 50 countries. During 2006, revenues and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become reached US$18.2 billion and US$4.1 billion, respectively, and the largest contributors to cash flow (EBITDA) were as follows: Mexico, 34%; the United States, 29%; and Spain, 13%. Approximately 85% of consolidated EBITDA was earned from investment-grade countries. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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