Homex Hones Price Thoughts

Mexico’s Desarrolladora Homex was discussing initial price thoughts of low 10s Tuesday on the first day of roadshows for what is expected to be a $300m 5-year bond. The borrower is scheduled to wrap up meetings in New York and Boston today via Credit Suisse and Deutsche Bank. This comes in the wake of a successful $500m 10-year NC5 last week from homebuilding peer Urbi (Ba3/BB minus), which generated a book of $2.5bn from over 170 accounts, pricing to yield 10%. Like Urbi, Homex is using proceeds to refinance short-term debt, with Moody’s assigning a Ba3 rating to the issue. The homebuilder last visited the bond market in December 2009, when it issued a $250m 9.5% 2019 to yield 9.99%, through Credit Suisse and HSBC. Those bonds have been trading around 9.40% mid-market.