Hilton Worldwide, acquired by Blackstone in a landmark $20m buy-out, has confirmed its debt restructure, a deal that lightens the load for the luxury hotel group, which has been toiling with an impaired balance sheet.
The restructuring cuts its $20bn in debt by nearly $4bn and relaxes its maturity until November 2015.
The deal was made via the purchase and retirement of $1.8bn of debt and the conversion of $2.1bn of mezzanine debt to preferred equity.
Blackstone took Hilton private in July 2007 for $26bn – a massive $20bn of which was made up of bank debt and $6bn in equity from the private equity firm and its investors.
The economic downturn subsequently burnt the luxury hotel industry as businesses and consumers tightened their purse strings.
Hilton’s president and CEO Christopher Nassetta said the company is well positioned to capitalise on the recovery of the hospitality industry, underpinned by it adding 302 new hotels last year – the second most in the company’s 91-year history.
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