Posadas to Raise Capital in Q3

Mexican hotel group Grupo Posadas is looking to raise at least $50m in additional capital in Q3. In March, the hotel operator had been heard planning to sell bonds as part of a liability management exercise, according to sources familiar with the company’s plans. Specifically, Posadas had been looking to address a 2013 domestic maturity totaling MXP2.25bn ($189m). The company is rated B3/B+, following downgrades by Moody’s and Fitch in November and December. It last visited the markets in January 2010, selling $200m in 2015 bonds at a 9.5% yield, through JPMorgan. In December, Moody’s cut its rating for the company to B3 from B2, with a negative outlook.