Posadas Sees Buyout Interest

Mexican hotel group Posadas is reviewing buyout proposals as it seeks to raise $50m in a stock offering during 3Q11 and a possible capital increase of $100m-150m, Scotia Capital says. Posadas stockholders’ do not intend to relinquish control the group, and the bonds were still trading last week at 2-3 points below the change of control put price of 101.00. Rothschild Bank has been mandated to find new investors for the company’s $50m stock offering and capital increase. Posadas was heard planning to sell bonds as part of a liability management exercise, according to sources familiar with the company’s plans. Specifically, the hotel operator is looking to address a 2013 domestic maturity totaling MXP2.25bn ($194m). Posadas 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.