Posadas Heard With High 9s

Mexico’s Grupo Posadas is expected to pull the trigger on a $200m 2015 bond sale this week, and investors are hearing whispers of 9.75% on the B2/B+ rated hotel operator. “It should be more like 10%, but the company is price sensitive,” says a New York-based high yield investor looking at the deal. Posadas is in investor meetings on the deal, which is for refinancing existing debt. JPMorgan is running the sale. Moody’s expects the notes issuance to be neutral to Posadas’ leverage and significantly improve the liquidity position by extending the average life of debt. Posadas and subsidiaries operate 112 hotels in Mexico, Brazil, Argentina, Chile and USA.