Hilton Hotels Corp. (NYSE:HLT) today announced the closing of a $500 million mortgage loan provided by Morgan Stanley Dean Witter.
The loan term is 10 years and will bear interest at 7.95% per annum. The non-recourse loan is secured by first mortgage interests in five Hilton properties: the 1,896-room Hilton San Francisco; 1,544-room Hilton Chicago; 654-room Pointe Hilton Squaw Peak Resort (Phoenix); 458-room Hilton McLean (Virginia), and 304-room Hilton Short Hills (New Jersey). The loan proceeds will be used to pay down Hilton`s floating rate debt.
“We are very pleased to have completed this transaction,” said Matthew J. Hart, executive vice president and chief financial officer. “It reduces our exposure to floating rate debt, extends our maturities and was done at a favorable rate.”