Private equity-backed hotel chain Extended Stay is looking to raise nearly $600m via its upcoming IPO on the New York Stock Exchange, or almost six times the $100m placeholder value it filed in July.
The company plans to float nearly 28.25m shares at a price of $18 to $21 apiece, valuing it at up to $4.2bn, according to a document filed with US securities regulators.
Extended Stay, which is backed by private equity firm Blackstone and hedge fund Paulson & Co, is currently the largest owner and operator of company-branded hotels in the US with 682 properties. It posted and EBITDA of $434.3m on revenues of $1bn last year.
Deutsche Bank, Goldman Sachs, JP Morgan, Citigroup, Barclays, Morgan Stanley, Macquarie, Stifel and BofA Merrill Lynch are acting as underwriters for the IPO.
The company had filed for Chapter 11 bankruptcy protection in June 2009 after struggling to refinance the $7.6bn of debt it was saddled with through the $8bn buyout by Lightstone Group two years earlier.
In the meantime, Brixmor, which is also backed by Blackstone, has just raised $825m via its IPO.
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