EXTENDED STAY AMERICA, INC. (NYSE:STAY) Files An 8-K Other Events
Item8.01.
| Other Events. |
On April27, 2017, Extended Stay America, Inc. and ESH
Hospitality, Inc. (together, the Company) issued a press release
which announced an underwritten secondary offering (the offering)
of 30,000,000 Paired Shares, each Paired Share consisting of a
share of common stock of Extended Stay America, Inc. and a share
of ClassB common stock of ESH Hospitality, Inc., which are
attached and trade together as Paired Shares, by certain selling
stockholders affiliated with Centerbridge Partners, L.P., Paulson
Co. Inc. and The Blackstone Group L.P. (the Selling
Stockholders). The Company will not sell any Paired Shares in the
offering and will not receive any proceeds from the offering. In
addition, none of the Companys officers or directors are selling
any Paired Shares beneficially owned by them in the offering.
In addition, Extended Stay America, Inc. and ESH Hospitality,
Inc. announced that they have entered into a share repurchase
agreement with the Selling Stockholders to which they intend to
repurchase 750,000 Paired Shares directly from the Selling
Stockholders. The share repurchase will be effected in a private,
non-underwritten transaction at a price per share equal to the
price paid by the underwriters in the offering. Extended Stay
America, Inc. and ESH Hospitality, Inc. expect to fund the share
repurchase from cash on hand. The share repurchase is expected to
be consummated concurrently with the offering. Although the share
repurchase will be conditioned upon the closing of the offering,
the closing of the offering will not be conditioned upon the
closing of the share repurchase. The share repurchase has been
approved by the audit committees of Extended Stay America, Inc.
and ESH Hospitality, Inc. and is to, and will count toward, the
Companys existing combined Paired Share repurchase program.
A copy of the press release is attached as Exhibit 99.1 to this
Current Report on Form 8-K and is incorporated herein by
reference.
| Item9.01. | Financial Statements and Exhibits. |
(d)Exhibits
| Exhibit Number |
Exhibit Description |
|
| 99.1 |
Press release of Extended Stay America, Inc. dated April27, 2017, announcing the Secondary Offering and Repurchase of Paired Shares. |
About EXTENDED STAY AMERICA, INC. (NYSE:STAY)
Extended Stay America, Inc. (Extended Stay) is an integrated owner/operator of Company-branded hotels in North America. The Company operates in hotel operations segment. The Company’s business operates in the extended stay sector of the lodging industry. As of December 31, 2016, the Company owned and operated 629 hotels comprising approximately 69,400 rooms located in 44 states across the United States and in Canada. The Company owns and operates its hotels under its brand, Extended Stay America, which serves the mid-price extended stay sector. As of December 31, 2016, the Company also owned and operated three Extended Stay Canada hotels. The Company operates its hotels owned by ESH Hospitality, Inc. (ESH REIT). The hotels are operated by the Operating Lessees, subsidiaries of the Company and are managed by ESA Management LLC (ESA Management), a subsidiary of the Company. ESH Strategies, a subsidiary of the Company, owns the brands related to its business. EXTENDED STAY AMERICA, INC. (NYSE:STAY) Recent Trading Information
EXTENDED STAY AMERICA, INC. (NYSE:STAY) closed its last trading session up +0.40 at 17.85 with 3,446,591 shares trading hands.