Contingent financing taken out last year by cemex served its purpose last week after a drop in its stock price left holders of the Mexican cement company's convertible bonds out of the money. On Wednesday, the borrower exercised US$200m of note purchase contracts underlying contingent convertible units that will be issued to investors instead of a cash payment. Ever since the global financial crisis put it on the brink of bankruptcy, Cemex has been in deleveraging mode and sensitive to any potential uptick in borrowing costs.
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