Extended Stay prices $375 million term loan at 99.5, spread of 425 bps

By Paul A. Harris

Portland, Ore., June 6 – Extended Stay America Inc. priced its $375 million senior secured term loan (B+) with a 425 basis points spread to Libor and a revised 0.75% Libor floor at 99.5, a loan trader said on Friday.

The deal traded to par ½ bid, 101½ offered, the source added.

The final spread was 50 bps tighter than the tight end of the initial 475 to 500 bps spread talk. The deal came 50 cents rich to initial OID talk of 99. The Libor floor was trimmed from 1%.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the joint lead arrangers on the deal.

Proceeds will be used to refinance $365 million of mezzanine debt and pay related transaction fees and expenses.

Extended Stay America is a Charlotte, N.C.-based owner and operator of company-branded hotels.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.