Displaying items by tag: bond
Germany: HeidelbergCement has issued a Eurobond with a value of Euro1bn and a maturity date of 30 March 2023. The international bond has a fixed coupon of 2.25%/yr.
The proceeds from the bond will be used to pre-fund the upcoming Italcementi acquisition and other general corporate purposes. Subsequently, the bridge financing for the takeover will be reduced from Euro2.7bn to Euro2bn. The bridge financing will be refinanced by free cash flow, the sale of production sites and the issuance of bonds.
Jaiprakash Associates misses interest payment on bonds
09 March 2016India: Jaiprakash Associates has missed an interest payment due on 7 March 2016 on its bonds worth US$150m. The interest will be paid later from the proceeds of its recent US$2.4bn sale of cement assets, the company said in a statement.
"Interest was payable on the bonds on the semi-annual interest payment date of 7 March 2016. The issuer wishes to inform you that it has not paid such interest. The issuer intends to engage in discussions with holders of the bonds," the statement said. The convertible bonds are due for redemption in 2017.
Jaiprakash Associates announced in late February 2016 that it was selling the majority of its 22.4Mt/yr cement portfolio to UltraTech Cement for US$2.4bn.The group has an estimated debt of US$11bn as of 31 March 2015, according to a Credit Suisse House of Debt report dated 21 October 2015.
Shanshui Cement defaults on US$270m bond
25 January 2016China: Shandong Shanshui defaulted on a US$270m three-year bond that matured on 21 January 2016. It is the second default for its owners, China Shanshui Cement, since November 2015. The move places Shanshui Cement at increased risk of bankruptcy and complicates plans by Tianrui Group to purchase the company. The previous debt default triggered multiple lawsuits from creditors that have already seen some of its assets frozen or put into impending auctioning, according to the South China Morning Post.
"The underlying cause of Shandong Shanshui's debt problems is unresolved disputes over shareholders' control, which restricted its fund-raising channels," said Shandong Shanshui in a statement. Since the estimated value of the company's assets far exceeds its debt, it expects court-ordered assets sales to bring in less proceeds than claims made by creditors, it added.