CHARLOTTE, NC--Extended Stay America, Inc. (the “Company”) (NYSE:STAY) today announced that it entered into a preferred share repurchase agreement with certain selling stockholders affiliated with Centerbridge Partners, L.P. and The Blackstone Group L.P. (the “Selling Stockholders”) pursuant to which the Company repurchased directly from the Selling Stockholders 14,069 shares of Series A Preferred Stock of the Company (the “Preferred Shares”).
The preferred share repurchase was effected in a private, non-underwritten transaction at a price per share equal to $1,000 plus all accrued and unpaid dividends thereon through and including the date of the repurchase. The Company funded the preferred share repurchase from cash on hand. The preferred share repurchase was approved by the Company’s audit committee. After this preferred share repurchase, the Company has 7,133 Preferred Shares outstanding and the Selling Stockholders no longer beneficially own any Preferred Shares. Following the closing of the preferred share repurchase, the repurchased Preferred Shares will be retired. The timing and method of any future Preferred Share repurchases (other than in connection with the exercise of any put rights), will depend on a variety of factors, including market conditions and the Company's financial condition and are subject to the discretion of management.
The Company’s Chief Financial Officer, Jonathan Halkyard, commented, “We are pleased to continue to improve our balance sheet and lower our cost of capital. Since returning to the public markets in 2013 and including this repurchase agreement, the Company has retired over $950 million in debt and has refinanced the entire balance sheet into long dated, low cost and flexible debt.“