Javer Talks 13% Area

Mexico’s Servicios Corporativos Javer is talking 13% area on a $160m-$200m 5-year through BofA-Merrill and Credit Suisse, which is due to price today. The Ba3/BB minus 144a/Reg S senior unsecured issue has a change of control put at 101. Proceeds will repay around $39m in holdco Proyectos del Noreste debt via dividend payment and also cover general corporate purposes, says Fitch. It assigns a BB minus rating and assumes 51%-70% recovery in the event of default. Javer will hedge interest and a portion of the principal against foreign exchange risk, says Moody’s, which notes that 100% of the issuer’s corporate debt will be in USD, while Javer cashflow is in MXP. The company specializes in construction and commercialization of affordable entry-level, middle income, and residential housing in Mexico.