Su Casita Buyback Falls Victim to Markets

Mexico’s Hipotecaria Su Casita has become the latest victim of whippy debt markets. The mortgage lender terminated its tender offer for the $150m in outstanding 8.50% 2016 senior notes this week, citing adverse market conditions. A peso offering to fund the buyback was said to have been in the works. Merrill Lynch was running the buyback. The aborted liability management coincides with a brutal November for high yield cross border markets that saw the death of Grupo Unialco’s $150m 7-10-year, a $275m 10-year from Mexico’s Sanluis, a $150m 2010 from Brazil’s Banco Cruzeiro, a $220m 2014 from Argentina’s Banco Macro and Cap Cana’s $500m 2017 amortizer.