Lone Star Funds, the private-equity firm founded by billionaire John Grayken, is securitizing a $340 million loan it used to fund the purchase 38 U.S. Hyatt Hotel properties last September.

JP Morgan and Goldman Sachs underwrote the loan, according to a Kroll Bond Ratings' presale report. The loan has an initial two-year term with three, one-year extension options for a full term of five years. The loan, which pays only interest for its entire term, has a KBRA in-trust loan-to-value of 91.6%, which is high in the for a single-borrower commercial mortgage securitization.

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