Certain affiliates of Blackstone Group LP, Centerbridge Partners LP and Paulson & Co. Inc. are selling 12.5 million paired shares of Extended Stay America Inc. and ESH Hospitality Inc.
Each paired share comprises an Extended Stay common share and an ESH Hospitality class B common share. The company will not receive any proceeds from the offering. Based on Extended Stay's Dec. 12 closing stock price of $16.82 per share, gross proceeds from the offering are expected to be about $210.3 million.
Centerbridge Partners, Paulson & Co., Blackstone and their affiliates will no longer own a majority of the shares, and Extended Stay will cease to be a controlled company after the offering.
Citigroup will be the underwriter for the offering.
Extended Stay and ESH, meanwhile, agreed with the selling stockholders to directly repurchase 625,000 paired shares in a private, non-underwritten transaction, which it will fund with cash on hand.