Extended Stay America, Inc. announced that its subsidiary, ESH Hospitality, Inc., priced a $375 million Senior Secured Term Loan (the “Term Loan”) at LIBOR plus 4.25%, with a minimum LIBOR of 0.75%, with a five year term, and offered at 99.5. The financing is expected to close on June 23, 2014, subject to the execution of definitive documentation and customary closing conditions. The proceeds of the Term Loan will be used to refinance the existing outstanding $365 million of 9.4% mezzanine debt and pay related transaction fees and expenses.

“The new Term Loan allows us to reduce our cash interest expense by approximately $16 million annually, lowers our average cost of debt to under 4%, and, with a one year non-call period, provides us our desired flexibility to deleverage over time” stated Peter Crage, Chief Financial Officer.

The Term Loan was arranged by Goldman Sachs Bank USA, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC.

Extended Stay America, Inc., the largest owner/operator of company-branded hotels in North America, owns and operates 684 hotels in the U.S. and Canada comprising approximately 76,200 rooms and employs approximately 10,000 employees in its hotel properties and headquarters. The Company owns and operates hotels under the core brand Extended Stay America®, which serves the mid-priced extended stay segment, and other brands.