ORLANDO, FL— Five hotel and resort properties owned by CNL Hotels & Resorts Inc. are now backing a $1.5 billion loan the company has secured with an affiliate of Deutsche Bank. The loan has an initial term of two years, but it also contains three one-year extension options for CNL. CNL will use the loan’s proceeds to repay the $794-million CMBS loan it assumed during the purchase of KSL Recreation Corporation and to reduce the short-term loan it procured in order to acquire KSL, which currently has an outstanding balance of about $1 billion. CNL also plans on repaying the short-term loan’s remaining balance with a $375-million secured credit facility, which will also be obtained through an affiliate of Deutsche Bank. That facility could be closed on or before Sept. 30.
