Hoteles City Express, S.A.B. de C.V. ("Hoteles City" or the "Company") (BMV:HCITY) announced today its intention to launch an offering of common stock in a global primary and secondary offering both in Mexico and internationally, subject to market conditions and the receipt of certain regulatory authorizations.
Hoteles City would use the net proceeds from the global offering to take advantage of available growth opportunities and accelerate its plans for the expansion and development of new hotels. In addition, it would use the proceeds for future selective acquisitions of the minority interests in its co-owned hotels that it does not hold, as well as for acquisitions of hotels from third parties affiliated with the chain. A small portion of the proceeds will be used to continue to develop its commercial and distribution platforms and its electronic marketing and room distribution systems, as well as for general corporate purposes. Hoteles City maintains its growth and expansion commitment in the limited-service segment, primarily within the Mexican hotel industry.
Morgan Stanley and Citi will act as joint global coordinators. Morgan Stanley, Citi, Bank of America Merrill Lynch and HSBC will act as joint international bookrunners. Accival, Morgan Stanley, HSBC and Actinver will act as Mexican lead bookrunners.
The Company expects the offering to take place once the necessary regulatory authorizations are obtained, subject to market conditions. This offering will consist of a primary and secondary public offering in Mexico through the Mexican Stock Exchange (Bolsa Mexicana de Valores) and an offering to qualified institutional buyers in the United States pursuant to Rule 144A under the U.S. Securities Act of 1933, as amended (the "Securities Act") and outside the United States and Mexico pursuant to Regulation S under the Securities Act and in compliance with applicable law in the relevant jurisdictions.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the ordinary shares or any other securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. The ordinary shares referenced in this press release may not be offered or sold to the public without the authorization of the Mexican National Banking and Securities Commission (Comision Nacional Bancaria y de Valores), as contemplated under the Mexican Securities Market Law (Ley del Mercado de Valores).
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States, and it does not constitute an offer, solicitation or sale in any state or jurisdiction in which such offer, solicitation or sale would be unlawful. Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the Securities Act. Any public offering of securities in the United States must be made by means of a prospectus that may be obtained from the issuer and that will contain detailed information about the company and its management, as well as its financial statements. This press release is formulated in accordance with Rule 135(e) of the Securities Act.
About Hoteles City:
Hoteles City is considered the leading and fastest-growing limited-service hotel chain in Mexico, in terms of number of hotels, number of rooms, geographic presence, market share and revenues. Founded in 2002, Hoteles City specializes in offering high-quality, comfortable and safe lodging at affordable prices via a limited-service hotel chain geared towards the domestic traveler. With 88 hotels in operation located throughout Mexico, Costa Rica and Colombia, Hoteles City operates three distinct brands: City Express, City Suites and City junior to serve different segments of its target market. In June 2013, Hoteles City successfully completed its IPO and began trading on the Mexican Stock Exchange under the ticker symbol "HCITY". For more information please visit our Investor Relations website: www.hotelescity.com/en/investors