Urbi Bonds Tumble on Report Company May Have Missed Loan PaymentBen Bain
Bonds sold by Mexican homebuilder Urbi Desarrollos Urbanos SAB tumbled after a column in the Mexico City daily El Universal said the homebuilder may have missed a loan payment to Prudential Financial Inc.
Columnist Alberto Aguilar reported that Urbi may have missed a loan payment of $60 million to Prudential without saying how he obtained the information.
Urbi bonds due in 2022 fell 8.39 cents to 75.19 cents on the dollar at 2:29 p.m. in Mexico City, pushing the yields up 1.63 percentage points to 14.86 percent, according to data compiled by Bloomberg. The price is the lowest on a closing basis since the securities were issued in January 2012.
Alma Beltran, a press official at Urbi, said executives weren’t immediately available to comment because they were attending an industry event in New York. John Chartier, a spokesman at Prudential, declined to comment.