Bulletin: Elementia's Announced Sale Of Cement Assets Will Support Debt Reduction; Spin-Off Of Other Assets Still Underway - S&P Global Ratings’ Credit Research

Bulletin: Elementia's Announced Sale Of Cement Assets Will Support Debt Reduction; Spin-Off Of Other Assets Still Underway

Bulletin: Elementia's Announced Sale Of Cement Assets Will Support Debt Reduction; Spin-Off Of Other Assets Still Underway - S&P Global Ratings’ Credit Research
Bulletin: Elementia's Announced Sale Of Cement Assets Will Support Debt Reduction; Spin-Off Of Other Assets Still Underway
Published Sep 27, 2019
2 pages (1141 words) — Published Sep 27, 2019
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Abstract:

MEXICO CITY (S&P Global Ratings) Sept. 27, 2019--Elementia S.A.B. de C.V. (BB/Watch Neg/--) announced the sale of its cement assets in Pennsylvania to Leigh Hanson, Inc., a subsidiary of HeidelbergCement, for a gross value of $151 million. Elementia will use the proceeds for general corporate purposes and debt repayment. As of June 2019, Elementia's reported debt was about $807 million (considering an exchange rate of $1 per MXN19.7). In our view, the transaction will reduce the company's debt burden, once anti-trust authorities approve the sale. On April 5, 2019, Elementia announced its intention to spin off its metal and building system divisions into a new independent company. Shortly afterwards, we placed our ratings on Elementia on CreditWatch with negative implications,

  
Report Type:

Bulletin

Ticker
3255475Z@MM
Issuer
GICS
Building Products (20102010)
Sector
Global Issuers
Country
Region
Latin America
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Bulletin: Elementia's Announced Sale Of Cement Assets Will Support Debt Reduction; Spin-Off Of Other Assets Still Underway" Sep 27, 2019. Alacra Store. Mar 28, 2024. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Elementia-s-Announced-Sale-Of-Cement-Assets-Will-Support-Debt-Reduction-Spin-Off-Of-Other-Assets-Still-Underway-2308914>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: Elementia's Announced Sale Of Cement Assets Will Support Debt Reduction; Spin-Off Of Other Assets Still Underway Sep 27, 2019. New York, NY: Alacra Store. Retrieved Mar 28, 2024 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Elementia-s-Announced-Sale-Of-Cement-Assets-Will-Support-Debt-Reduction-Spin-Off-Of-Other-Assets-Still-Underway-2308914>
  
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