VMC Vulcan Materials

Vulcan Materials Co. (VMC) said Tuesday it plans to offer $1 billion worth of principal in notes, aiming to use proceeds to reduce other borrowings and buy back other notes maturing sooner.

The company, which produces asphalt, cement and other heavy-construction materials, said it has commenced the tender offer for up to $275 million in principal amount of its 5.6% senior notes due 2012 and its 6.3% senior notes due 2013.

Vulcan has been reporting losses recently, though earlier this month Chief Executive Don James predicted public-sector infrastructure spending would bolster business this year, particularly federal stimulus money for highways.

Vulcan shares were up 1.5% at $40.13 in recent trading. The stock has fallen 21% in the last year.

-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@dowjones.com