Lone Star Funds is tapping the commercial mortgage bond market for a cashout refinancing of a portfolio of 38 Hyatt-branded hotels.

The private equity firm obtained $582.5 million in financing from Goldman Sachs and J.P. Morgan, consisting of a $410.0 million first mortgage and $172.5 million of mezzanine debt. Proceeds were used to refinance $510 million of debt that was originated in 2015, including a $340 million mortgage securitized in HYATT 2015-HYT; return $52.2 million of equity to the sponsor; establish $7.9 million of upfront reserves; and cover closing costs of $15.4 million.

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