Posadas to issue bonds for approximately 99 million dollars

Grupo Posadas, a hotel operator in Mexico, will issue bonds worth around $399 million, marking the completion of its financial restructuring process.
The issuance will allow the company to cancel $360.9 million of Senior Notes due in June 2022 and secure funds for its operations and recovery from the impact of the COVID-19 pandemic.

Posadas manages 186 hotels with a total of 28,888 rooms. Photo: Posadas

12/21/2021

Posadas, a hotel operator in Mexico, announced that it will issue bonds worth approximately $399 million, with a maturity date in 2027, to conclude its financial restructuring process. This move comes as the company aims to recover from the impact of the ongoing health crisis on its operations. The issuance will allow for the cancellation of $360.9 million of Senior Notes due in June 2022. The new bonds will be backed by the company's subsidiaries and various assets as part of the restructuring plan.

Grupo Posadas had previously reached an agreement with bondholders to extend the maturity of its 2022 bonds and achieve an appropriate capital structure. In October, the company voluntarily underwent a pre-agreed Chapter 11 restructuring process in the Southern District of New York's United States Bankruptcy Court. The recent approval from the court and bondholders paved the way for the successful completion of Posadas' debt restructuring, maximizing financial flexibility in response to the challenges posed by the global hotel industry amid the COVID-19 pandemic.

Posadas manages 186 hotels with a total of 28,888 rooms in Mexico's key city and beach destinations. City hotels account for 87% of the total rooms, while beach hotels make up the remaining 13%. The company operates well-known brands such as Live Aqua, Grand Fiesta Americana, Fiesta Americana, The Explorean, Fiesta Inn, and One Hoteles, among others.

Read the full article (in Spanish).

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