Borrower profile: Maxcom starts new phase of growth

“Maxcom is emerging from its volatile past,” says Manuel Guerena, credit analyst at Standard and Poor’s. Nobody can accuse Guerena of hype – the Mexican fixed-line operator has endured some torrid times but now it seems the company is back on track. It was on the verge of a default in 2001. The recovery began with a backs-against-the-wall restructuring in April 2002. Last December, however, the firm returned successfully to the international capital markets with a $200 million, 10-year non-call five bond, which Morgan Stanley sole lead managed. The US bank has gained a reputation for executing difficult transactions and is, arguably, the go-to underwriter for Latin American high-yield credits. The funds from the bond issue will be used for capital expenditure and debt refinancing, and raising them marks a new phase in ensuring Maxcom’s financial stability. Although the company is a small player in the Mexican market, it maintains a strong customer base and can now claim to be one of the fastest-growing companies in Mexico.