GEO Reins in Yield

Mexico’s Corporation GEO has launched at 9% yield a $250m 2014 bond set to price and allocate this morning, according to investors. The homebuilder had given guidance of 9.50%-area Wednesday, but brought it in after the order book topped $750m by midday, according to investors. “The underlying demographic is pretty compelling, with most names rallying in the last few months,” says a New York-based EM investor, noting that even at 9%, Geo offers some spread versus comparables trading in the mid-8%s. Proceeds will be used to refinance existing debt as well as for working capital needs. Morgan Stanley and Santander are managing the sale.