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Prospect News home > News index > List of issuers E > Headlines for ESH Hospitality, Inc. > News item |
S&P rates ESH Hospitality notes BB-
S&P said it assigned its BB- issue-level rating and 3 recovery rating to the proposed $500 million senior unsecured notes due 2027 to be offered by ESH Hospitality Inc., a subsidiary of Extended Stay America Inc.
Proceeds are expected to be used to repay $500 million of the company’s outstanding senior secured term loan B.
“We rated the proposed unsecured notes at the same level as our issue-level rating on Extended Stay’s existing unsecured debt because, despite the company’s plans to issue additional unsecured notes, we assume the company will use proceeds from the notes issuance to repay secured debt, and as such, recovery prospects for unsecured lenders will not be impaired,” said S&P in a press release.
The ratings on the company’s other notes are unchanged.
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