RM&N, Creel, García-Cuéllar and Cleary Gottlieb represent Grupo Posadas in agreement with Ad Hoc
The firms have advised Mexican hotel group Posadas in agreement with Ad Hoc as holders of its 7.875% senior notes
Ritch, Mueller y Nicolau, S.C. and Creel, García-Cuéllar, Aiza y Enríquez, as well as Cleary Gottlieb Steen & Hamilton LLP have represented Grupo Posadas S.A.B. de C.V. in an Agreement with The Ad Hoc Group of holders of its 7. 875% Senior Notes due 2022, which, together with an additional group of holders who have expressed their support for the Agreement, collectively represent more than a majority of the aggregate principal amount of the Existing Notes, to restructure the terms of the Existing Notes as set out in the summary of key terms of the transaction.
The arrangement, subject to corporate approvals, contemplates the exchange of the Existing Notes for new senior notes which will be secured by liens on real estate and certain receivables of the Company. The Transaction will extend the maturity of the Company’s note obligations by 5.5 years to 30 December 2027.
This transaction will allow the hotel group to emerge from the pandemic in a stronger financial position and remain Mexico’s leading hotel operator. The Company’s day-to-day operations will continue as normal.
DD3 Capital Partners, acted as financial advisors; while Guerra, Hidalgo y Mendoza, S.C., Mijares, Angoitia, Cortes y Fuentes, S.C. and Shearman & Sterling LLP advised The Ad Hoc Group.
Grupo Posadas is Mexico’s leading hotel operator and owns, leases, franchises and manages 183 hotels and 28,538 rooms in Mexico’s most important and most visited urban and coastal destinations. Urban hotels represent 85% of the total number of rooms and coastal hotels 15%. Posadas operates the following brands: Live Aqua Beach Resort, Live Aqua Urban Resort, Live Aqua Boutique Resort, Grand Fiesta Americana, Fiesta Americana, The Explorean, Fiesta Americana Vacation Villas, Live Aqua Residence Club, Fiesta Inn, Fiesta Inn LOFT, Fiesta Inn Express, Gamma and One Hotels.
