Goldman Sachs among banks to arrange Extended Stay America loan

Extended Stay America has announced that its subsidiary, ESH Hospitality, Inc., is seeking to raise a $375-million senior secured term loan to refinance the existing outstanding $365 million of mezzanine debt and pay related transaction fees and expenses.

Peter Crage, CFO, said, "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 owns and operates 684 hotels in the U.S. and Canada comprising approximately 76,200 rooms.

Blackstone Group took ESA public in November 2013.  ESA raised $566 million after its initial public offering was priced at $20 per share, the mid-point of its expected range.