The Carlyle Group is plowing ahead with its plans to buy Manor Care. There has been some thorny political questions raised, but now a financial issue is cropping up. The private equity firm is in the midst of a roadshow to sell $4.6 billion in bonds backed by Manor Care's real estate. According to the Financial Times, the market for commercial mortgage-backed securities isn't really cooperating. Spreads have really widened recently, even though the value of commercial real estate has held up well through the credit crunch. My guess is that the deal will get done, but there may have to be some give and take on the bonds. Apparently, the banks currently have agreed to cap interest costs, which puts
them in something of a bind.  

For more:
- here's the Financial Times article 

Related article:
- Manor Care buyer puts staffing promises in writing