Posadas Launches Cash Tender

Grupo Posadas has launched a cash tender offer targeting its $200m outstanding in 9.250% 2015 bonds, it says. In the tender expiring November 29, the Mexican hotel operator is offering holders $1,045 per $1,000 principal before a November 14 early deadline, and $1,015 after. Bank of America Merrill Lynch and JPMorgan are managing the tender. Fitch recently upgraded the credit rating of Grupo Posadas to B from B minus, in a move it says is driven by the successful divestiture of Posadas’ South American hotel operations for $275m, as well as expectations that leverage will remain stable after using the proceeds to reduce the company’s indebtedness.