The Blackstone Group has decided to bypass the bank loan market to finance its $3.1 billion acquisition of Extended Stay America. Instead, the private equity firm is financing the hotel chain buyout with commercial mortgage-backed securities (CMBS), according to a market source. The news came after investors had been looking forward to sinking their teeth into the hefty $2.7 billion new money bank credit that was expected to back the acquisition. Bear Stearns, who advised Blackstone on the acquisition, and Bank of America were earmarked to arrange the deal's financing at the time it was announced earlier this month.
A spokesman from Blackstone did not comment on how …
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