U.S. private equity company Blackstone Group LP (BX.N) is close to a deal with the owners of Hotel Del Coronado, near San Diego, to restructure the hotel's debt of $630 million and become a major owner of the property, the Wall Street Journal said. Under the terms of the pending deal, Blackstone and existing owners Strategic Hotels & Resorts Inc (BEE.N), Kohlberg Kravis Roberts & Co and KSL Resorts will contribute enough capital to cut the beachfront hotel's debt load to $425 million, the Journal said, citing people familiar with the matter. In the proposed deal, Blackstone would provide about $100 million of new capital and convert into equity a slice of less than $20 million of the Del Coronado's mezzanine, WSJ said. A call from Reuters to Blackstone was not immediately returned. (Reporting by Fareha Khan; Editing by Jon Loades-Carter)
Source
