The Blackstone Group, New York, has agreed to acquire Prime Hospitality Corp., Fairfield, N.J., for $12.25 per share, a 42% premium to its closing price on Aug. 18.Including debt, the total value of the transaction is over $790 million. Of the 256 hotels it operates and franchises, Prime owns 112. As part of the deal, Prime will start a tender offer for $178.7 million of senior subordinated notes outstanding. Bear Stearns & Co. served as Prime's financial advisor, while Banc of America Securities did the same for Blackstone. Bank of America's CMBS Capital Markets Group is providing the acquisition financing.
Processing Content
