Homex Out of Prison With Billionaire Slim’s 20-Cent Gift
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Carlos Slim, the world’s richest man, is giving a lifeline to Mexican homebuilder Desarrolladora Homex SAB.
Homex’s $400 million of bonds due in 2020 soared a record 20 cents to 79.11 cents on the dollar after the builder said on April 19 that it agreed to sell its stake in two prisons to companies controlled by Slim. The notes sank as low as 53.44 cents on April 17 after Homex said it would seek to raise cash from asset sales and junior debt issuance, while rivals Urbi Desarrollos Urbanos SAB and Corp. Geo SAB hired banks to advise on possible restructurings. Urbi said last week it will use a 30-day grace period to make an interest payment due April 19.