Posadas Will Seek to Extend Debt Maturities After Asset Sale
Grupo Posadas SAB (POSADASA), a Latin American hotel operator, is looking to extend the maturities on debt denominated in pesos and dollars.
Chief Financial Officer Ruben Camiro said the Mexico City- based company plans to push out due dates on its 2.25 billion pesos ($175 million) of debt maturing in April 2013 and $200 million of dollar bonds due in 2015. The company hopes to extend the dollar bond maturities by at least three years, he said by phone yesterday from Mexico City.
“We would like to repackage everything and move it down the road,” he said.
Posadas plans to extend the debt maturities after closing the sale of its South American operations to Paris-based Accor SA (AC), according to Camiro. The deal announced on July 16 is for $275 million dollars and will leave Posadas with net debt of about $200 million, Camiro said. He said the sale is “on track” and should close “very soon.”
Yields on Posadas’s dollar bonds due in 2015 rose four basis points, or 0.04 percentage point, to 8.94 percent yesterday, according to data compiled by Bloomberg. The securities’ yields have tumbled 656 basis points since Posadas announced the asset sale more than two months ago.
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