Extended Stay hotel chain announces secondary stock offering
08/04/2014 5:47 PM
08/04/2014 5:50 PM
Extended Stay America, the Charlotte-based hotel chain that went public in November, on Monday said it has launched a secondary stock offering of 21 million shares.
The proceeds of the offering will go to affiliates of Centerbridge Partners, Paulson & Co. and The Blackstone Group, three investment companies that own Extended Stay shares, according to a securities filing. The company is not receiving any proceeds, and none of the officers or directors are selling shares.
In the offering, investors receive “paired shares” of Extended Stay and ESH Hospitality, a real estate investment trust. The underwriters of the offering, which include Bank of America Merrill Lynch, will have an option to purchase an additional 3.15 million paired shares.
Extended Stay shares closed Monday at $23.09, up 2 percent. The shares were down more than 2 percent after-hours trading.
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