CHARLOTTE, NC—Locally-based Extended Stay America, Inc. reports that subsidiary, ESH Hospitality, Inc. is looking to raise a $375-million senior secured term loan.
The financing would be used to refinance the hotelier's existing outstanding $365 million of mezzanine debt and pay related transaction fees and expenses.
Extended Stay America's CFO Peter Crage says, “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.
Extended Stay America, Inc. 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.
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