The Real Deal New York

Blackstone to refinance loans for Forest City’s Barclays Center

Schwarzman considers reworking $500 million in bonds of payment in lieu of taxes
October 30, 2014 05:45PM

Private equity giant Blackstone Group’s Stephen Schwarzman has agreed to buy up old loans for billionaire Mikhail Prokhorov’s Brooklyn Nets and the Barclays Center, of which Forest City Ratner has a 55 percent stake.

Schwarzman is mulling over whether to rework about $500 million in PILOT bonds (payment in lieu of taxes). This would allow the Barclays Center to lower its nearly 7 percent interest rate on the bonds, the New York Post reported. Goldman Sachs issued the bonds and is advising Barclays.

Blackstone recently refinanced $60 million of the Brooklyn Nets’ debt and lent $50 million to the team for its new Sunset Park practice space. [NYP]Mark Maurer