Blackstone Boosts Debt for CarrAmerica
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Anyone wondering why REITs keep getting taken out at large premiums should take a closer look at the Blackstone Group's $5.6 billion acquisition of CarrAmerica (CRE Quote) this week.
To help fund the buy in the long term, Blackstone is obtaining a whopping $4.25 billion of debt financing for the transaction from German American Capital (a Deutsche Bank Securities affiliate), Bank of America, and Citibank Global Markets, according to the merger agreement filed with the Securities and Exchange Commission Wednesday.
It's not clear if this will be a commercial mortgage-backed securities, or CMBS, deal, but if it is, it would represent one of the largest such transactions of late, says Adam Fox, a Fitch Ratings analyst. The biggest recent CMBS deal, he says, was a $4.2 billion issuance by J.P. Morgan for a diverse loan pool of commercial mortgages. ...
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