The Law Offices of Ronald P. Slates, P.C.
A Proffessional Corporation est 1980

September 2013 Archives

Debt as a strategy for private equity managers

Private real-estate fund managers have been spending billions of dollars on investments in recent months. What may surprise some readers, however, is how much of the investment strategy has been focused in upon debt.

The $13.5 billion refinancing of the Hilton hotel chain

We are once again seeing businesses test the market by providing a variety of debt offerings that have not been seen since before the economic downturn in 2007. It now appears that Blackstone is making a public offering in the amount of $13.5 billion regarding the refinancing of Hilton Hotel Corps, one of the largest hotel chains in the world. At least $3.5 billion of that public offering will include commercial mortgage-backed securities.

Commercial real estate debt is historically high

There is not likely going to be any shortage of commercial debt either in California or across the United States during the coming years.  Though the housing sector appears to be on its way towards recovery, there is a great deal of commercial real estate debt that will likely come due during the next five years.  It is believed that as much as $1.7 trillion in commercial real estate loans are anticipated to be due from now until 2018.

Commercial loans continue to be a good option for lenders

Though regulators have cracked down upon the selling of consumer loans by banks to other entities, the sale of commercial loans to other businesses has continued. For better or worse, there is no shortage of bad loans that will need to be dealt with by the banks.