Extended Stay America announced its subsidiary, ESH Hospitality, 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.
Goldman Sachs USA, Citigroup Global Markets, Deutsche Bank Securities and J.P. Morgan Securities are the joint lead arrangers for the term loan. The consummation of the term loan is subject to a number of factors, including market interest and other conditions.
Peter Crage, chief financial officer, stated, “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.”