Mexican Hotel Operator Targets $225m

Mexican hotel operator Grupo Posadas is preparing to issue $225m in 2017 senior notes, according to ratings agencies, as part of a liability management operation. The Mexican hotel operator is scheduled to finish a US and European roadshow Wednesday, with pricing of the new B2/B+ bond expected to follow. Posadas has launched a tender targeting the $200m outstanding in 9.250% 2015 bonds. It is offering holders $1,045 per $1,000 principal before a November 14 early deadline, and $1,015 through the final November 29 deadline. Bank of America Merrill Lynch and JPMorgan are handling the tender, and are joined by Citi, Deutsche Bank and Santander on the new issue. Moody’s B2 mark represents an upgrade from B3, and follows a similar move in October by Fitch.