La Quinta Said to Plan Debt Refinancing Before IPO

La Quinta Holdings Inc., a midprice lodging chain owned by Blackstone Group LP (BX), plans to refinance about $2.1 billion of debt in preparation for an initial public offering in March, a person with knowledge of the matter said.

JPMorgan Chase & Co. and Morgan Stanley, hired by Blackstone last year to explore a sale or IPO of La Quinta, also will manage the refinancing, said the person, who asked not to be named because the process is private. La Quinta will seek a new term loan, the person said.

Blackstone is capitalizing on rising stocks and hotel occupancies to take some of its largest lodging assets public. The New York-based firm filed on Dec. 24 for an IPO of La Quinta under the Jumpstart Our Business Startups Act, which allows companies with less than $1 billion in revenue to keep applications confidential until shortly before they promote the share sale.

La Quinta operates more than 800 midprice, limited-service hotels with about 80,000 rooms in the U.S., Canada and Mexico, according to its website.

Peter Rose, a Blackstone spokesman, declined to comment on the refinancing plans.

Another Blackstone hotel unit, McLean, Virginia-based Hilton Worldwide Holdings Inc. (HLT), refinanced about $13 billion of debt before its December IPO. The offering raised $2.71 billion, a record for the lodging industry. Extended Stay America Inc., a chain whose owners include Paulson & Co., Centerbridge Partners LP and Blackstone, went public on Nov. 12.

To contact the reporter on this story: Hui-yong Yu in Seattle at hyu@bloomberg.net

To contact the editor responsible for this story: Kara Wetzel at kwetzel@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.