So how does The Blackstone Group intend to finance its historic buyout of Equity Office? It sold off some properties, and it has set up a new debt package. Investment Dealers' Digest detailed a $26.4 billion debt package, which includes $15 billion in senior term loans and $11.4 billion in mezzanine loans split in eight tranches, and $2.3 billion of assumed debt that spells more business for underwriters Goldman Sachs, Bank of America and Bear Stearns. There are indications that bondholders played hardball and secured more favorable terms.  One big challenge is interest rates, a rise in which could cause some problems. It's fair to say that the jury is still out on how well this deal will pay off for the sponsor.

For more:
- here's the article from IDD Magazine