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Goldman Sachs Bank, Others to Arrange Extended Stay’s $375MM Term Loan

May 27, 2014, 07:32 AM
Filed Under: Hotel & Resort

Extended Stay America, Inc. announced that its subsidiary, ESH Hospitality, Inc., is seeking to raise a $375 million Senior Secured Term Loan (the "Term Loan") to refinance the existing outstanding $365 million of mezzanine debt and pay related transaction fees and expenses.

Peter Crage, Chief Financial Officer, stated, "We are pursuing this opportunity to reduce our debt service related to our mezzanine financing and further enhance our cash flow. We intend to maintain our strong capital structure and financial flexibility which will allow us to further deleverage as we generate free cash flow in the future."

Goldman Sachs Bank USA, Citigroup Global Markets Inc., Deutsche Bank Securities, and J.P. Morgan Securities LLC are the joint lead arrangers for the Term Loan. The consummation of the Term Loan is subject to a number of factors, including market interest and other conditions.

Extended Stay America, Inc., the largest owner/operator of company-branded hotels in North America, owns and operates 684 hotels in the U.S. and Canada comprising approximately 76,200 rooms and employs approximately 10,000 employees in its hotel properties and headquarters. The Company owns and operates hotels under the core brand Extended Stay America(R), which serves the mid-priced extended stay segment, and other brands.

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