La Quinta Said to Seek $2.1 Billion Term Loan Before Share Sale
La Quinta Intermediate Holdings LLC is seeking a $2.1 billion term loan to refinance commercial mortgage-backed securities before the Blackstone Group LP-owned lodging chain’s initial public offering next month, according to a person with knowledge of the deal.
JPMorgan Chase & Co. is arranging the seven-year debt and will host a lender meeting on Feb. 12 at 10 a.m. in New York, said the person, who asked not to be identified without authorization to speak publicly.
La Quinta filed today for an IPO with an initial amount of $100 million. New York-based Blackstone is capitalizing on rising stocks and hotel occupancies to take some of its largest lodging assets public. 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.
Peter Rose, a spokesman for Blackstone, said the company is in a quiet period and couldn’t comment beyond what was in the filing.
La Quinta operates and provides franchise services to more than 800 hotels in the U.S., Canada and Mexico under La Quinta Inns and La Quinta Inns & Suites brands, according to the Dallas-based company’s website.
Blackstone acquired La Quinta in January 2006 for about $3 billion, according to a statement.
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