Homebuilder Seeks to Reopen HY

Mexico’s Geo is looking to follow compatriot Bimbo into the dollar markets with a $200m 2020 NC5, as it wrapped up a roadshow this week. The homebuilder is targeting a 9.75% area yield for the bond, expected as soon as today after garnering at least $700m in orders, according to investors. Citi, Morgan Stanley and Santander are managing the transaction. Fitch rates the new notes BB minus, noting a strong market position, and diversification, but also 52% short term debt and dependence on government mortgage loans. Proceeds from the offer is expected to go to refinancing short-term debt, Fitch says. Geo’s last bond was a $250m 2014 sold in September to yield 9%.