UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported) April 27, 2017
EXTENDED STAY AMERICA, INC.
(Exact name of registrant as specified in its charter)
Delaware | 001-36190 | 46-3140312 | ||
(State or other jurisdiction of incorporation or organization) |
(Commission File Number) |
(I.R.S. Employer Identification Number) | ||
11525 N. Community House Road, Suite 100 Charlotte, North Carolina |
28277 | |||
(Address of principal executive offices) | (Zip code) |
Registrants telephone number, including area code (980) 345-1600
ESH HOSPITALITY, INC.
(Exact name of registrant as specified in its charter)
Delaware | 001-36191 | 27-3559821 | ||
(State or other jurisdiction of incorporation or organization) |
(Commission File Number) |
(I.R.S. Employer Identification Number) | ||
11525 N. Community House Road, Suite 100 Charlotte, North Carolina |
28277 | |||
(Address of principal executive offices) | (Zip code) |
Registrants telephone number, including area code (980) 345-1600
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 8.01. | Other Events. |
On April 27, 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 Class B 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 pursuant 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 pursuant 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.
Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits
Exhibit Number |
Exhibit Description | |
99.1 | Press release of Extended Stay America, Inc. dated April 27, 2017, announcing the Secondary Offering and Repurchase of Paired Shares. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, each of the Registrants has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
EXTENDED STAY AMERICA, INC. | ||||
Date: April 27, 2017 |
By: |
/s/ John R. Dent | ||
Name: | John R. Dent | |||
Title: | General Counsel | |||
ESH HOSPITALITY, INC. | ||||
Date: April 27, 2017 |
By: |
/s/ John R. Dent | ||
Name: | John R. Dent | |||
Title: | General Counsel |
EXHIBIT INDEX
Exhibit |
Exhibit Description | |
99.1 | Press release of Extended Stay America, Inc. dated April 27, 2017, announcing the Secondary Offering and Repurchase of Paired Shares. |
Exhibit 99.1
Extended Stay America Announces Secondary Offering and Repurchase of Paired Shares
CHARLOTTE, N.C.April 27, 2017 (BUSINESS WIRE) Extended Stay America, Inc. and ESH Hospitality, Inc. (NYSE: STAY) (together, the Company) today 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 Class B 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.
Citigroup and Barclays will act as the underwriters for the offering. The offering will be made only by means of a prospectus and related prospectus supplement, copies of which may be obtained, when available, from: Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: (800) 831-9146; or Barclays Capital Inc. c/o Broadridge Financial Solutions 1155 Long Island Avenue Edgewood, NY 11717.
In addition, Extended Stay America, Inc. and ESH Hospitality, Inc. announced that they have entered into a share repurchase agreement with the Selling Stockholders pursuant 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, among other things, 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 pursuant to, and will count toward, the Companys existing combined Paired Share repurchase program. Following the closing of the share repurchase, the repurchased Paired Shares will be retired. The timing and method of any future repurchases, which will depend on a variety of factors, including market conditions and the Companys financial condition, are subject to the discretion of management.
An automatic shelf registration statement relating to these securities was filed on June 5, 2015 with the Securities and Exchange Commission (the SEC) and became effective upon such filing. This press release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, goals, plans, objectives and future events, including the sale of Paired Shares by the Selling Stockholders and the repurchase of Paired Shares by the Company, as such, may involve known and unknown risks, uncertainties and other factors that may cause the Companys actual results or performance to differ from those projected in the forward-looking statements, possibly materially. For a description of factors that may cause the Companys actual results or performance to differ from any forward-looking statements, please review the information under the headings Cautionary Note Regarding Forward-looking Statements and Risk Factors included in the Companys combined annual report on Form 10-K filed with the SEC on February 28, 2017 and other documents of the Company on file with or furnished to the SEC. Any forward-looking statements made in this press release are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, will have the expected consequences to, or effects on, the Company or its business or operations. Except as required by law, the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. We caution you that actual outcomes and results may differ materially from what is expressed, implied or forecasted by the Companys forward-looking statements.
About Extended Stay America
Extended Stay America, Inc. (ESA) is the largest integrated hotel owner/operator in North America. Its subsidiary, ESH Hospitality, Inc. (ESH), is the largest lodging REIT in North America by unit and room count, with over 620 hotels and 69,000 rooms in the U.S. and Canada. ESA manages all of ESHs properties, providing over 8,000 jobs at its hotel properties and corporate headquarters. Extended Stay America® is the leading brand in the mid-priced extended stay segment, with over twice as many rooms as its nearest competitor.
Contacts
Investors:
Rob Ballew
(980) 345-1546
investorrelations@extendedstay.com
Media:
Terry Atkins
(980) 345-1648
tatkins@extendedstay.com
$H\O+=+6"R619'@MPZS2/
M&2@E9TC 12VT(