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Mexico's Grupo Posadas gets tenders for 84.1% of 8¾% notes
By Laura Lutz
Des Moines, April 14 - Grupo Posadas, SAB de CV said that it had received tenders for $189.22 million, or 84.1%, of its $225 million outstanding 8¾% notes due 2011 as of the expiration of its tender offer, midnight ET on Friday.
The company earlier said it received tenders and consents for a majority of the notes by the consent deadline, 5 p.m. ET on March 28.
The offer began on March 17. Final settlement is expected on Wednesday.
For each $1,000 principal amount of notes tendered by the consent deadline, Grupo Posadas said it would 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.
Grupo Posadas had sought consents to amend the note indenture to eliminate some covenants and related events of default. The company needed consents from holders of a majority of the notes.
In connection with the tender offer, Grupo Posadas said it 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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