BEVERLY HILLS, CA Hilton Hotels Corp. has closed a $500 million mortgage loan provided by lender, Morgan Stanley Dean Witter.
The loan term is 10 years and will bear interest at a fixed rate of 7.95% per annum. The non-recourse loan is secured by a cross-collateralized first mortgage on five Hilton properties: the 1,896-room Hilton San Francisco; the 1,544-room Hilton Chicago; the 654-room Pointe Hilton Squaw Peak Resort, Phoenix; the 458-room Hilton McLean, VA; and the 304-room Hilton Short Hills, NJ. Proceeds will be used to pay down the company s floating rate debt. According to Marc Grossman, senior vp/corp. affairs, before this deal, 65% of Hilton s debt was at a floating rate; now only 55% is, and the company is currently looking into additional methods of creating an even better balance. (9/28/00) –Diana M. Rodriguez