Starwood Hotels & Resorts Trust said it received loan commitments of more than $7 billion to pay part of the cost of its $13.7-billion acquisition of ITT.
The two term loans and one line of revolving credit will pay for the cash portion of the ITT acquisition, refinance some of Starwood's and ITT's outstanding debt, pay for other acquisitions and transaction-related expenses and provide working capital.
Bankers Trust New York and Chase Manhattan arranged the loans and each committed $1.85 billion, Starwood said. Seven other banks each committed $500 million: Bank of Montreal, NationsBank, Barclays Capital, Credit Lyonnais, Goldman Sachs Mortgage, Lehman Bros. Holding and Societe Generale.
Starwood also said it received approval from the Mississippi Gaming Commission to take over ITT and its casino at a Sheraton hotel in Tunica, Miss. ITT shareholders will vote on the purchase Feb. 18.