After securing a $2.8 billion CMBS deal to support their $3.18 billion acquisition of Kerzner International, private equity firms Providence Equity Partners and Colony Capital have teamed up with bank duo Credit Suisse and Deutsche Bank to arrange a $575 million credit facility to further support the transaction.

A CLO manager noted that the bank deal was professed to be much bigger before the equity firms secured the $2.8 billion CMBS deal, which provided a big portion of the acquisition's financing. The CMBS piece was said to make sense, "given it is real estate that the private equity firms are buying," the investor said. The new debt is structurally subordinate to the CMBS deal, he added.

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