The Wall Street Journal reported Tuesday afternoon that The Blackstone Group LP has restructured the debt on its 2006, US$3.4 billion acquisition of the 822-unit La Quinta hotel chain.
Blackstone reportedly has pared outstanding debt to US$2.65 billion from US$3.05 billion, partly by buying US$265 million in junior debt at a discount and retiring it. Blackstone also paid down another US$150 million in debt, sources told The Wall Street Journal. The move is being labeled as similar to what Blackstone did in 2010 to restructure its debt for Hilton Hotels Corp.The same sources also said Blackstone extended the US$2.65 billion in debt due to expire in July 2012 to July 2014 by agreeing to pay an interest rate 3.5 percentage points higher than under the previous terms.