Urban Exposure 6.5% Bonds

[PeterBill]

Just got notice of these from my broker

Urban Exposure plc (UEX)
Urban Exposure plc: Launch of 6.5 % secured sterling bonds due 2026

https://www.investegate.co.uk/urban-exposure-plc--uex-/eqs/launch-of-6-5---secured-sterling-bonds-due-2026/20190715175506EQYNO/

Any views on these bonds from this board?

Regards
PB

[everhopeful]

Negative views on the Fixed Income Investor site. Company is felt to be too small, loss making and the bonds are likely to be illiquid. I am not tempted.

[PeterBill]

Thanks everhopeful, there is an article in shares magazine on this issue.

In conclusion the article says …

Brexit presents a big risk to the health of the
property market. As such, appetite for property
bonds is unlikely to be high. And anyone looking
at Urban Exposure plc may be concerned that the
business is loss-making and its share price has nearly
halved in the past year. All of these factors would
suggest a 6.5% yield would need to be carefully
considered — is it adequate compensation for the
potential risk involved?

[Tenorboy]

I had not entirely shared the pessimism with regard to this issue - but I note the RNS stating that this offering has been quietly extended by a week to August 6th.
The obvious inference is that it was undersubscribed and a chat yesterday with a chum involved in the offering said that the primary activity was people cancelling their subscriptions.
Bargepole time methinks