By Cristal Cody
Tupelo, Miss., Sept. 10 – Extended Stay America Inc. priced an upsized $750 million of senior notes due 2027 (Ba3/BB-) on Tuesday at par to yield 4 5/8%, according to a market source and a news release.
The deal was upsized from $500 million.
Deutsche Bank Securities Inc. was the underwriter on the Rule 144A and Regulation S transaction.
The notes were issued via Extended Stay America’s subsidiary, ESH Hospitality, Inc.
The issue is fully and unconditionally guaranteed by certain ESH subsidiaries.
Investor calls for the deal were held on Thursday.
Proceeds will be used to repay outstanding borrowings under the company’s existing term loan and for general corporate purposes.
Extended Stay America is a Charlotte, N.C.-based operator of an extended-stay hotel chain in the United States and Canada.
| Issuer: | ESH Hospitality, Inc.
|
| Guarantor: | ESH Hospitality subsidiaries
|
| Amount: | $750 million
|
| Description: | Senior notes
|
| Maturity: | 2027
|
| Bookrunner: | Deutsche Bank Securities Inc.
|
| Coupon: | 4 5/8%
|
| Price: | Par
|
| Yield: | 4 5/8%
|
| Trade date: | Sept. 10
|
| Settlement date: | Sept. 18
|
| Ratings: | Moody’s: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Investor calls
|
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