In Brief: Four Top Banks Back $1.75B Loan to Hilton

J.P. Morgan & Co., Wells Fargo & Co., Bank of New York, and BankAmerica Corp. are leading a $1.75 billion acquisition loan to Hilton Hotels Corp.

Hilton said it plans to purchase hotels and casinos during the next year and a half.

The loans mean chief executive Stephen Bollenbach can move forward with plans to spend $2 billion on new hotels and add 10,000 rooms a year to the 94,500 hotels Hilton owns.

"Our brand is underrepresented in the national hotel alignment," chief financial officer Matthew Hart said. "The oversupply of hotels in the U.S. means that you can buy them cheaper than you can build them."

The senior unsecured debt will mature in five years, with an annual renewal provision.

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