Geo’s Maquinaria Prices Bond

In its second attempt in the dollar bond markets, Geo’s Maquinaria Especializada has priced a $160m 2021 bond. The BB minus deal priced at 99.890, with a 9.652% coupon to yield 9.750%, in line with whispers heard earlier in the week. Last week, the Mexican homebuilder revived the structure it had tried to bring last year for the special purpose entity that allows it to raise funds off balance sheet and free up cash for land bank acquisitions. The deal – closer in nature to a private placement according to bankers on the deal – saw about $200m in demand from banks, private banks, hedge funds, asset managers an others, the bankers say. More than half went to US investors. The Maquinaria trust was created as a special purpose vehicle by Geo. The Mexican homebuilder sold Maquinaria its construction equipment assets, and maintains a 10-year service contract to use the equipment for its projects. This allows Geo to avoid debt on its own balance sheet. Geo filed for a similar domestic ABS deal last year before roadshowing the Maquinaria dollar bond in October. It held back on a deal then due to market volatility. Santander managed the sale.