Sections Syndication |
Newsletter| Subscribe to newsletter: |
|
|
Cemex Drops on Concern Debt Maturities Top Cash Flow Cemex SAB fell after UBS AG and Banco Santander SA said debt maturities will exceed cash flow in 2011, even after a refinancing of some loans coming due next year.
Cemex, the largest cement maker in the Americas, dropped 1.9 percent to 11.77 pesos in Mexico City trading, the fourth decline in five days. The shares gained 4.9 percent yesterday after the company said banks agreed to refinance $3.7 billion in debt. The company faces debt maturities starting in 2010 that exceed its operating cash flow and the shares remain more expensive than rivals, UBS analysts Gordon Lee and Rodrigo Monteiro wrote in a research note today. They kept a “sell” rating on shares. Maturities in 2011 “clearly cannot be paid” from cash flow, Santander analyst Gonzalo Fernandez wrote. “We maintain our cautious view on Cemex given the tough operating environment and its still-tight financial situation,” Fernandez wrote, keeping a “hold” rating on the shares. Cemex is seeking to refinance loans from the $14.2 billion acquisition of Rinker Group Ltd. in 2007. The company said yesterday banks agreed to extend $1.5 billion of a $3 billion bank loan due in December 2009, and refinance $2.2 billion in short-term debt. http://www.bloomberg.com/apps/news?pid=20601086&sid=a0.ZDTulf3EA&refer 363 times read
|
|||
|
Did you enjoy this article?
(total 0 votes)
|
||
Link to Us:
Business Financial Services