Hopes of unloading some $20 billion in mortgage-backed buyout financing this quarter seem a bit far fetched on Wall St. After all, there hasn’t been a buyout-backed CMBS offering in months.
But under the threat of further writedowns, bankers have lined up an aggressive first quarter schedule for syndicating CMBS used to finance LBOs — including a $9 billion offering related to Blackstone’s Hilton buyout, which would be the largest CMBS issuance ever.
Wishful thinking? Looking at the size of the offerings below, it sure seems that way. Here are the buyout-related CMBS issuances planned for the first quarter, according to Credit Suisse.
| Buyout target | Buyout sponsor | CMBS underwriters | CMBS size ($mln) |
| Hilton Hotels | Blackstone Group | Bear, BofA, Deutsche, GS, MS | $9,000 |
| Harrah’s Casinos | Apollo Management | JPM, BofA, Citi, CS, DB, ML | $4,000 |
| Manor Care | Carlyle Group | JPM, CS, BofA | $3,000 |
| La Quinta | Blackstone Group | ML, UBS, BofA | $3,000 |
| Station Casinos | Colony Capital | Deutsche, JPM | $1,000 |
(Image: Hilton Hotels sign displayed above Sydney building. Reuters file)
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