CHARLOTTE, NC-Extended Stay America raised $565 million in its initial public offering and investors on Wall Street wanted in today in early trading.
Shares of the mid-price long stay hotel chain rose 12% in trading earlier today. Blackstone Group LP, Centerbridge Partners LP and Paulson & Co. had owned Extended Stay equally. The company will use proceeds to pay debt, according to a regulatory filing. None of the firms sold shares in the offering that traded 28.25 million shares at $20 each, according to Bloomberg News.
Extended Stay sold a little over 14% of the company in the IPO, giving it a market value of approximately $4 billion. The $565 million raised excludes 4.24 million shares the underwriters could sell in the overallotment that would increase IPO proceeds to $649.75 million. See story at Bloomberg News.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
