Loma Negra Secures $500M Bond Financing at 6.5% Interest
Loma Negra closed a $500 million placement of Class 6 bonds on January 20 and issued $60 million at 6.50% interest with a 36-month bullet maturity and semiannual payments. The financing bolsters medium-term operational funding as shares rose from $11.55 to $12.36 then slid to $10.78.
1. Bond Placement Details
On January 20, Loma Negra closed a public placement under its non-convertible bond program for a total of $500 million in Class 6 negotiable bonds, marking the largest funding transaction under the existing debt facility.
2. Terms and Structure
Of the placement, $60 million was issued at a 6.50% coupon rate, priced at 100% of face value, with issuance and settlement on January 23, followed by a 36-month bullet maturity and semiannual interest payments.
3. Share Price Reaction
Following the bond deal, the company’s share price climbed from $11.55 on January 20 to $12.36 by January 27, before reversing course and falling to $10.78 on February 5.
4. Company Overview
Loma Negra is Argentina’s leading cement producer, procuring raw materials from quarries, manufacturing concrete and aggregates, and providing railroad transportation services to support the construction sector.