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Home » ESA Gets $900M Credit
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ESA Gets $900M Credit

By Hotel BusinessJune 15, 20011 Min Read
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NEW YORK— Extended Stay America reported that it has received commitments for $900 million in credit facilities and that it expects second-quarter earnings to be roughly in line with analyst estimates. The company expects earnings for the quarter ending June 30 to be between $0.23 and $0.24 per share. Analysts estimates ranged between $0.23 and $0.25 per share, with a consensus of $0.24 per share, according to Thomson Financial/First Call. The company also plans to sell $300 million of senior subordinated notes. Proceeds from the notes would be used to repay debt under existing credit facilities. The new $900 million credit facilities would also be used to repay debt. The company said it expects $350 million of the new credit facilities to remain undrawn at the closing of the new facilities, which the company would use to develop new hotels.

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