Hilton IPO

Blackstone filed for a $1.25 billion IPO on Hilton. This would be used to "pay down debt" according to the Bloomberg article that is out today, but is a drop in the bucket compared to the $9 billion senior mortgage that was structured in 2010 with a piece in BALL 2010-HLTN, and another ~$10 billion in mezz debt done at the same time. Previous Hilton stories can be found here.

Bloomberg also notes that Blackstone has had two other IPOs in the past year: SeaWorld Entertainment Inc ($807.3mm, April - up 6%) and Pinnacle Foods Inc. ($667mm, March - up 35%).

BALL 2010-HLTN

Goldman's out, deal size is smaller, pricing today (maybe).

"Goldman may have simply decided the Libor plus 175 basis points investment was attractive for their own internal investment, whereas large banks are still in a loan exposure reduction mode," said Darrell Wheeler, senior managing director at Amherst Securities Group in New York.

...

"Not having a rating is fairly experimental and it was likely difficult to find investors for more than a billion of unrated paper," Wheeler said.

Dan Nigro, chief executive of Warfield Consultants, a Montclair, N.J., firm focused on asset-backed and residential mortgage-backed securities, thinks this bond is a precursor to other unrated bonds because the ratings agencies have been discredited during the past few years.

"There is an entire market that trades without ratings and there are enough people who can evaluate these bonds without needing ratings so there will be an evolution to a private market that will be largely unrated," he said.

BALL 2010-HLTN ($2.664bln)

Old Hilton collateral being securitized. Structure is one pass-through note $2.664bln offered ($406mm non-offered interests), 2.86 WAL, 4.54 fully-extended WAL, L+175 coupon.

You'll recall that the toal debt is a whopping $20.6 billion (orig face, $19.256 outstanding) from the $25 billion buyout by Blackstone at the peak. This consists of a nearly $9 billion senior mortgage ($2.664 of which is going in this BALL 2010-HLTN deal), and then another $10 billion-ish of mezzanine debt (9 tranches) and unsecured debt ($666mm). The debt was restructured some, including the retirement of $1.79billion of mezz debt - total outstanding today = $17.4mm. There's also another couple-to-three billion of subordinate loans.

Multiple New Issue - WFCM 2010-C1 ($735mm); Hilton; Extended Stay

WFCM 2010-C1 ($735mm) was announced today - first issue off the new shelf for Wells. Collateral is 37 loan, 59 properties, 43.5% BOA, 43% WF, 13.4% Basis RE Cap 2. More to come...

Also, the WSJ reported today that the two largest Hotel CMBS clusterf*cks are coming back with new issues.

Hilton is purportedly first in line with $3bln (this is original debt, still on BOA & GS books).

Extended Stay is then expected out with $2bln before November to partly fund the $3.9bln buyout by Centerbridge/Paulson/Blackstone.