Cemex taps floaters due 2018; First Gen joins pipeline; Cnooc notes trade better in secondary

By Aleesia Forni

Virginia Beach, Sept. 27 - Mexico's Cemex SAB de CV sold a $100 million add-on to its recently priced floating-rate notes due 2018, as the emerging markets sector's tone was generally positive on Friday.

"Spreads moving a little tighter from where I'm sitting," one market source said Friday, "though there's not much action."

Also during the session, news surfaced that First Gen Corp. plans to price a dollar-denominated bonds offering, a market source said.

The company tapped Deutsche Bank, HSBC and JPMorgan as arrangers.

In the secondary market, one trader quoted the dollar-denominated tranche of China National Offshore Oil Corp.'s (Cnooc) deal almost 20 basis points better compared to its new issue spread.

The deal originally priced 25 bps tighter than talk at Treasuries plus 185 bps on Thursday.

Cemex adds-on

Friday's session saw Mexico's Cemex prices a $100 million add-on to its floating-rate senior secured notes (//BB-) due 2018, according to a company news release.

The notes have a coupon of Libor plus 475 bps.

The offering was a Rule 144A and Regulation S transaction.

Cemex priced the original $400 million issue at par on Wednesday.

The deal also included $1 billion of 7¼% senior secured notes due 2021.

Proceeds will be used to purchase the company's outstanding 9½% senior secured notes due 2016 issued by Cemex Finance LLC. Remaining proceeds will be used for general corporate purposes.

Cemex is a Monterrey, Mexico-based building materials supplier and cement producer.

First Gen

Philippines' First Gen is planning to price a dollar-denominated issue of bonds, according to a market source.

The company has mandated Deutsche Bank, HSBC and JPMorgan to hold a roadshow ahead of the possible deal.

First Gen is a Pasig, Philippines-based power generation company.

Cnooc notes firm

The secondary market saw Cnooc's recently sold $1.3 billion of 4½% notes due 2023 trade 18 bps better on Friday at 167 bps bid, 163 bps offered, a trader said.

The notes sold at par with a spread of Treasuries plus 185 bps on Thursday.

The two-part deal also included €500 million of 2¾% notes due 2020 priced at mid-swaps plus 115 bps.

Both tranches sold 25 bps tighter than talk.

Bank of China, JPMorgan, UBS and Goldman Sachs are the bookrunners for the Rule 144A and Regulation S offering.

Cnooc is a Hong Kong-based oil and gas exploration and production company.

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