NEW YORK (
has struck a deal to restructure the debt of Hilton Worldwide, its largest investment, according to published media reports.
The deal would reduce Hilton's debt load from about $20 billion to $16 billion, according to reports in
The New York Times
The Wall Street Journal
that cited sources familiar with the matter.
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Under the deal, Blackstone will provide $800 million in equity to buy back Hilton debt at a discount, and maturities will be pushed back on some of Hilton's debt, the reports added.
Like other hotel operators, Hilton is suffering from sluggish demand as a result of the global economic slowdown that came in the wake of the financial crisis.
Blackstone representatives reportedly declined to comment.
When the private equity firm arranged to take Hilton private for $26 billion in 2007 the credit markets were still frothy, and big leveraged buyouts were numerous, the
Blackstone shares closed Friday at $13.73.
-- Written by a member of TheStreet.com staff
This article was written by a staff member of TheStreet.com.