Extended Stay sets roadshow for $500 million 10-year senior notes

By Paul A. Harris

Portland, Ore., April 27 – Extended Stay America, Inc. plans to start a roadshow on Tuesday for a $500 million offering of 10-year senior notes (expected ratings B3/BB-), according to an informed source.

The deal is set to price at the end of the April 27 week.

Deutsche Bank Securities Inc. is the left bookrunner for the Rule 144A and Regulation S for life offering. Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Barclays and Credit Suisse Securities (USA) LLC are the joint bookrunners. Lebenthal is the co-manager.

The notes come with five years of call protection and feature a three year 35% equity clawback and a 101% poison put.

The issuing entity is subsidiary ESH Hospitality, Inc.

The Charlotte, N.C.-based owner and operator of company-branded hotels plans to use the proceeds to repay mortgage debt.

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