Urbi Whispers on New 10-Year

Urbi Desarrollos Urbanos (Urbi) is heard whispering low to mid 10s for a new $300m plus 10-year NC5 bond. The Ba3/BB minus Mexican homebuilder is expected to price this week, with roadshows scheduled to end today in London and Los Angeles. Talk comes wide to peer Homex which has a 2020 trading at around 9.60%. However, it comes inside the likes of weaker homebuilding names like GEO and Javer, which have 2021s trading at around 11.48% and 12.22%, respectively. Meanwhile, Urbi’s outstanding 2020s have recently been trading as tight as 9.5%. Moody’s highlights Urbi’s robust liquidity position and conservative capital structure as it assigns a Ba3 rating to the proposed senior unsecured issue. Credit challenges include the company’ exposure to high-middle and upper income sectors that have had restricted access to financing, it adds. On September 30, 2011, the company reported assets worth about MXP42.8bn ($3.3bn), according to Moody’s.