News 25 May. 2016

Curtis Counsels Grupo Posadas on $50 Million Notes Offering

Curtis, Mallet-Prevost, Colt & Mosle LLP acted as both U.S. and Mexican counsel to Mexico’s leading hotel operator, Grupo Posadas, S.A.B. de C.V. (“Posadas”) in a $50 million (U.S.) notes offering.

Posadas expects to use the net proceeds from the notes sale to exercise its option to redeem at par, on or after November 30, 2016, the total remaining principal amount outstanding of $38.3 million of its 7.875% Senior Notes due 2017, and the rest for general corporate purposes.

The new liability management and refinancing transaction consists of a Rule 144A/Regulation S capital markets offering of $50 million aggregate principal amount of 7.875% Senior Notes due 2022.

These new Senior Notes constitute a further issuance of - and form a single series with - Posadas’s outstanding 7.875% Senior Notes due 2022 that were issued on June 30, 2015 in the principal amount of $350 million. Curtis also acted as U.S. and Mexican counsel for the issuance of those notes.

The new 7.875% Senior Notes due 2022 are unsecured and are guaranteed by certain subsidiaries of Posadas and listed on the Luxembourg Stock Exchange.

J.P. Morgan Securities LLC was the initial purchaser of 7.875% Senior Notes due 2022.

The Curtis New York team was led by partner William Candelaria, who was assisted by counsel Susana Namnum and associate Daniel Dykes. Partner Rodrigo Valverde and associates Sofia Mancilla and Santiago Noriega led the Curtis Mexico team. Partner Klas Holm led the Curtis tax team and was supported by associate Thomas Reilly.