Extended Stay Announces Secondary Share Offering, Buyback

By Wallace Witkowski Markets MarketWatch Pulse

Extended Stay America Inc. shares slipped in the extended session Thursday after the hotel chain said it plans a secondary offering of "paired shares" with its real-estate investment trust arm ESH Hospitality Inc. Extended Stay shares fell 2.3% to $14.20 after hours. The company said the offering consists of 13 million paired shares -- one of Extended Stay and one of ESH -- from existing shareholders including Centerbridge Partners LP, Paulson & Co. and Blackstone Group LP. Extended Stay and ESH will not receive proceeds from the offering, rather, they plan to buy back just under 2 million of the shares in the offering.

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