Eagle Hospitality Properties Trust 8.25% Series A Cum PFD (EHPTP)

[Enterprising Investor]

Blackstone equity appears to be $115 to $118 million.

The purchase price was between $465 to $468 million, depending on which source is accurate. JPM provided $350 in financing.

Blackstone will generate returns on this deal in at least two ways: net interest income and a capital gain. Since Eagle will be "paying off Blackstone at a meaningful discount”, the capital gain will be capped.

There would be a third but limited way - buying shares EHPTP.

Once the loans have been repaid, the discount would flow to equityholders as a gain on extinguishment of debt.