Partners Group Favors Banks Over Private Credit for Rosen Buyout
Partners Group, a Swiss private equity firm, is favoring banks over private credit for its buyout of Rosen Hotels & Resorts. The company is seeking to raise $1.2 billion in debt financing for the acquisition, which is expected to close in the first quarter of 2024.
Rosen Hotels & Resorts
Rosen Hotels & Resorts is a hospitality company based in Orlando, Florida. It owns and operates a portfolio of hotels and resorts in the United States, including the Rosen Shingle Creek, Rosen Centre, and Rosen Plaza. The company also owns and operates the Rosen Inn at Pointe Orlando, a budget hotel located near the popular tourist destination of International Drive.
Partners Group’s Acquisition of Rosen Hotels & Resorts
Partners Group is acquiring Rosen Hotels & Resorts from its current owner, Blackstone Group. The deal is valued at $1.7 billion and is expected to close in the first quarter of 2024. Partners Group is seeking to raise $1.2 billion in debt financing for the acquisition.
Partners Group’s Financing Strategy
Partners Group is seeking to raise the $1.2 billion in debt financing for the acquisition from a mix of banks and private credit providers. The company is favoring banks over private credit for the deal, as banks are seen as more reliable sources of financing.
Partners Group is in talks with several banks, including JPMorgan Chase, Bank of America, and Citigroup. The company is also in discussions with private credit providers, such as Apollo Global Management and Ares Management.
Benefits of Bank Financing
Partners Group is favoring bank financing for the Rosen Hotels & Resorts acquisition for several reasons. Banks are seen as more reliable sources of financing, as they are less likely to pull out of a deal at the last minute. Banks also offer more flexibility in terms of repayment schedules and interest rates.
In addition, banks are more likely to provide financing for larger deals, such as the Rosen Hotels & Resorts acquisition. Private credit providers are more likely to provide financing for smaller deals, as they are more risk-averse.
Risks of Bank Financing
While bank financing offers several benefits, it also carries some risks. Banks are more likely to require more stringent terms and conditions, such as higher interest rates and shorter repayment schedules. Banks are also more likely to require more collateral, such as real estate or other assets, to secure the loan.
Conclusion
Partners Group is favoring banks over private credit for its acquisition of Rosen Hotels & Resorts. The company is seeking to raise $1.2 billion in debt financing for the deal, and is in talks with several banks and private credit providers. Banks are seen as more reliable sources of financing, as they are less likely to pull out of a deal at the last minute. However, banks are also more likely to require more stringent terms and conditions, such as higher interest rates and shorter repayment schedules.