Grupo Posadas Extends Early Tender

Grupo Posadas has extended the deadlines for a tender offer targeting its $200m outstanding in 9.250% 2015 notes, it says. The Mexican hotel operator will now give holders until November 23 to receive the $1,060 per $1,000 principal early tender price, and will pay $1,045 per $1,000 through the new November 30 final deadline. As of Tuesday, holders of approximately $60.5m of the notes, or 32.6%, had accepted. Posadas has also completed a roadshow this week marketing a new $225m 2017 bond. Bank of America Merrill Lynch and JPMorgan are managing the process. 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.