Mexico's Posadas accepts tenders for another $100,000 9¼% notes

By Toni Weeks

San Diego, Nov. 30 - Grupo Posadas, SAB de CV said it received tenders for an additional $100,000 principal amount of notes after the early tender deadline and before the company's tender offer expired at 5 p.m. ET on Nov. 30.

As previously reported, the company accepted tenders and consents for $116,629,000 of its $200 million of 9¼% senior notes due 2015 by 5 p.m. ET on Nov. 23, the early date. As a result, the company received the needed consents to amend the notes to eliminate substantially all of the restrictive covenants as well as various events of default and related provisions. A supplemental indenture was executed on Nov. 30, according to a company press release, and settlement of the early tenders occurred on the same day.

As noted before, the expiration was pushed back from 5 p.m. ET on Nov. 29, and the early deadline was pushed back from 5 p.m. ET on Nov. 14.

The company also bumped up the total purchase price on Nov. 15 to $1,060 per $1,000 principal amount of notes from $1,045 per $1,000 of notes. The total payment includes a $30.00 consent payment per $1,000 of notes tendered by the early deadline. Grupo Posadas will also pay accrued interest.

The company previously reported that holders had tendered $60.5 million principal amount, or about 32.6%, of the notes, as of 5 p.m. ET on Nov. 14.

The offer is conditioned on, among other things, consents from holders of a majority of the notes, which has been satisfied, and sufficient financing. The company priced $210 million of 7 7/8% senior notes due 2017 to yield 8% on Nov. 26, thus the financing condition has also been met.

Final settlement is set for Dec. 5.

Houlihan Lokey, Inc. (212 497-7864), J.P. Morgan Securities LLC (866 846-2874 or call collect 212 834-4239) and Bank of America Merrill Lynch (888 292-0070 or call collect 646 855-3401) are the dealer managers and solicitation agents.

Global Bondholder Services Corp. (866 795-2200 or call collect 212 430-3774) is the information agent.

Grupo Posadas is a hotel chain based in Acapulco, Mexico.

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