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Grupo Posadas seeks tenders, consents for 8¾% notes due 2011
By Laura Lutz
Des Moines, March 17 - Grupo Posadas, SAB de CV launched a tender offer and consent solicitation for all of its outstanding 8¾% senior notes due 2011.
As or March 17, $225 million of the notes were outstanding.
The tender offer will expire at midnight ET on April 11. The consent deadline is 5 p.m. ET on March 28.
Grupo Posadas is seeking consents to amend the note indenture in order to eliminate some covenants and related events of default. The company needs consents from holders of a majority of the notes.
For each $1,000 principal amount of notes tendered by the consent deadline, Grupo Posadas said it will pay $1,050, including a $15 consent payment.
Notes tendered after the consent deadline will not receive the consent payment.
The company will also pay accrued interest.
Settlement of the offer is expected within three business days of the expiration date.
In connection with the tender offer, Grupo Posadas plans to issue senior unsecured floating-rate and fixed-rate notes due 2013 and 2018 in the form of Certificados Bursatiles under Mexican law.
Proceeds from the new issue will be used to finance the tender offer, and settlement of the tender offer is conditioned on receipt of sufficient funding.
Settlement of the tender offer also depends on receipt of tenders and consents for a majority of the notes and on amendment of an $80 million credit agreement dated Nov. 10, 2006.
Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-0652) is the dealer manager and solicitation agent. D.F. King & Co., Inc. (800 290-6429 or collect 212 269-5550) is the tender agent and information agent.
Grupo Posadas is a Mexico City-based provider of hotel services.
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