SEC Reporting: Why Centerbridge Credit Partners Reported Big Extended Stay America, Inc Position?

SEC Reporting: Why Centerbridge Credit Partners Reported Big Extended Stay America, Inc Position?

The New Centerbridge Credit Partners Holding in Extended Stay America, Inc

Centerbridge Credit Partners filed with the SEC SC 13D/A form for Extended Stay America, Inc. The form can be accessed here: 000089534516000608. As reported in Centerbridge Credit Partners’s form, the filler as of late owns 16.5% or 32,448,258 shares of the Consumer Discretionary–company.

Extended Stay America, Inc stake is a new one for the and it was filed because of activity on November 18, 2016. We feel this shows Centerbridge Credit Partners’s positive view for the stock.

Reasons Why Centerbridge Credit Partners Bought – Extended Stay America, Inc Stock

Item 4. Purpose of Transaction

The subheading and first two paragraphs under subheading “Proposed Secondary Offering” of Item 4 is hereby amended and restated in its entirety to read as follows:

“References to and descriptions of the Stockholders’ Agreement and Registration Rights Agreement set forth above in this Item 4 do not purport to be complete and are qualified in their entirety by reference to the full text of the Stockholders’ Agreement and Registration Rights Agreement, which have been previously filed hereto as Exhibits 3 and 4, respectively, and incorporated by reference herein.

Share Repurchase

Pursuant to an agreement (the “

Share Repurchase Agreement

”) among the Corporation, ESH Hospitality, Inc. (“

ESH REIT

”) and the Sponsors, the Corporation and ESH REIT purchased 1,275,000 Paired Shares directly from the Sponsors in a private, non-underwritten transaction at a price per Paired Share equal to the price paid by the underwriter in the offering described below. This purchase was conducted pursuant to and counts toward, the previously announced the Corporation and ESH REIT Paired Share repurchase program.

The foregoing description of the Share Repurchase Agreement is qualified in its entirety by reference to the full text of the Share Repurchase Agreement, which is filed as Exhibit 6 hereto and is incorporated herein by reference.

Secondary Offering

On June 5, 2015, the Corporation and ESH REIT filed a joint automatic shelf registration statement contemplating the sale by each of the Sponsors of Paired Shares totaling, together with Paired Shares sold by the other Sponsors, in the aggregate 142,960,388 Paired Shares. On November 16, 2016, the Corporation and ESH REIT filed a prospectus supplement contemplating the sale by each of the Sponsors of Paired Shares totaling, together with Paired Shares sold by the other Sponsors, in the aggregate 12,750,000 Paired Shares at $14.76 price per Paired Share. On November 14, 2016, the Corporation, ESH REIT and the Sponsors entered into an underwriting agreement (the “

Underwriting Agreement

”) with the underwriter named therein (the “

Underwriter

”). Pursuant to the Underwriting Agreement, the Sponsors sold in the aggregate 12,750,000 Paired Shares to the Underwriter. The offering closed on November 18, 2016.

The foregoing description of the Underwriting Agreement is qualified in its entirety by reference to the full text of the Underwriting Agreement, which is incorporated herein by reference.

Distributions in Kind

On November 21, 2016, certain of the Reporting Persons made the following series of distributions in kind.

First, Centerbridge Capital Partners AIV VI-A, L.P. (“

VI-A

”), Centerbridge Capital Partners AIV VI-B, L.P. (“

VI-B

”) and Centerbridge Capital Partners Strategic AIV I, L.P. (“

SAIV

”) made distributions in kind of 110,898, 110,856 and 3,246 Paired Shares (the “

DIK Shares

”) respectively to their general partner, Centerbridge Associates, L.P. (“

CALP

”), in connection with pro rata distributions by VI-A, VI-B and SAIV to their respective partners.

Second, CALP distributed the DIK Shares to its sole economic partner, CCP GP Investors Holdings (Cayman), L.P. (“

CCPGPH

”).

Third, CCPGPH distributed the DIK Shares to certain of its members in connection with a pro rata distribution by CCPGPH to its members.

Upon receipt of the DIK Shares by the members of CCPGPH, including Mr. Aronson and Mr. Gallogly, the members donated the DIK Shares to various charities.

Lock-Up Agreements

In connection with the secondary offering referenced herein, the Corporation and ESH REIT, their respective executive officers and directors and the Sponsors have agreed with the Underwriter, subject to specified exceptions, not to sell, dispose of or hedge any of the Paired Shares or securities convertible into or exchangeable for Paired Shares, for a period of 30 days after November 14, 2016, except with the prior written consent of J.P. Morgan Securities LLC.

The foregoing description of the Lock-Up Agreements is qualified in its entirety by reference to the full text of the Lock-Up Agreements, which is incorporated herein by reference.”

Extended Stay America, Inc Institutional Sentiment

Latest Security and Exchange filings show 109 investors own Extended Stay America, Inc. The institutional ownership in Q3 2015 is high, at 106.03% of the outstanding shares. This is increased by 55366296 the total institutional shares. 209499892 were the shares owned by these institutional investors. In total 25 funds opened new Extended Stay America, Inc stakes, 47 increased stakes. There were 10 that closed positions and 31 reduced them.

3 managers had the stock in their top Ten. Notable investors are: Centerbridge Partners L.P., Simcoe Capital Management Llc, Blackstone Group L.P., Goldentree Asset Management Lp..

Raveneur Investment Group Lp is an institutional investor bullish on Extended Stay America, Inc, owning 60307 shares as of Q3 2015 for 0.34% of its portfolio. Steven Tananbaum Goldentree Asset Management Lp owns 787835 shares or 2.16% of its portfolio. NY Blackstone Group Lp have 2.57% of their stock portfolio for 47620730 shares. Further, Adi Capital Management Llc reported stake worth 3.95% of its US stock portfolio. The NY Centerbridge Partners Lp owns 47661591 shares. Extended Stay America, Inc is 46.47% of the manager’s US portfolio.

Business Profile

Extended Stay America, Inc. (Extended Stay) is an integrated owner/operator of company-branded hotels in North America. The Company operates in hotel operations segment. Its business operates in the extended stay lodging industry. It owns and operates approximately 630 hotels comprising over 69,400 rooms located in approximately 40 states across the United States and in Canada. It owns and operates its hotels under its core brand, Extended Stay America, which serves the mid-price extended stay segment. In addition, it owns and operates over three Extended Stay Canada hotels. It operates its hotels owned by ESH Hospitality, Inc. (ESH REIT). The hotels are operated by the Operating Lessees, subsidiaries of the Company and are managed by ESA Management LLC (ESA Management), a subsidiary of the Company. ESH Strategies, a subsidiary of the Company, owns the brands related to its business. The Company’s extended stay hotels are designed to provide lodging or apartment accommodations.

SEC Form 13D is filed within 10 days, by anyone who acquires beneficial ownership of 5%+ of any public firm. Activist investors and practices such as: company breakups, hostile takeovers, and change of control events, are permitted for this form filers. A filer must promptly update its 13D filing in case of acquisition or disposition of 1% or more of the securities that are the subject of the filing.

Insitutional Activity: The institutional sentiment decreased to 1.22 in Q2 2016. Its down 0.44, from 1.66 in 2016Q1. The ratio worsened, as 14 funds sold all Extended Stay America Inc shares owned while 30 reduced positions. 18 funds bought stakes while 55 increased positions. They now own 197.88 million shares or 0.07% more from 197.73 million shares in 2016Q1.

Ngam Advisors Limited Partnership has 261,383 shares for 0.05% of their US portfolio. The New York-based Renaissance Techs has invested 0% in Extended Stay America Inc (NYSE:STAY). Adi Mgmt Limited Company accumulated 4.43% or 385,035 shares. Alpine Prtn Vi Ltd Liability has 0.22% invested in the company for 31,508 shares. Oberweis Asset Management Incorporated holds 16,200 shares or 0.07% of its portfolio. Sei Co last reported 568,683 shares in the company. Ny State Common Retirement Fund holds 0% or 166,400 shares in its portfolio. Forum Secs Limited holds 36,307 shares or 1.62% of its portfolio. Alpine Woods Capital Investors Ltd Liability last reported 87,464 shares in the company. Credit Agricole S A has invested 0% of its portfolio in Extended Stay America Inc (NYSE:STAY). Morgan Stanley accumulated 780,523 shares or 0% of the stock. Citigroup Inc last reported 31,113 shares in the company. Parametric Portfolio Limited Liability has 0% invested in the company for 204,406 shares. Invesco Ltd reported 51,370 shares or 0% of all its holdings. Bancorporation Of Montreal Can has invested 0% of its portfolio in Extended Stay America Inc (NYSE:STAY).

Insider Transactions: Since October 4, 2016, the stock had 1 insider purchase, and 8 sales for $556.57 million net activity. The insider Blackstone Real Estate Associates VI-ESH L.P. sold 4.68M shares worth $69.00 million. Halkyard Jonathan S bought 10,000 shares worth $138,300. 4.98M shares were sold by PAULSON & CO. INC., worth $70.56M on Tuesday, October 4. $69.00 million worth of Extended Stay America Inc (NYSE:STAY) shares were sold by Centerbridge Credit Partners – L.P.. Blackstone Real Estate Partners VI.A-ESH L.P. also sold $70.56 million worth of Extended Stay America Inc (NYSE:STAY) on Tuesday, October 4. On Friday, November 18 the insider Centerbridge Credit Partners General Partner – L.P. sold $69.00 million.

The stock increased 0.46% or $0.07 on November 22, hitting $15.41. Extended Stay America Inc (NYSE:STAY) has declined 0.90% since April 21, 2016 and is downtrending. It has underperformed by 6.23% the S&P500.

Extended Stay America, Inc. is an integrated owner/operator of company-branded hotels in North America. The company has a market cap of $3.04 billion. The Firm operates in hotel activities segment. It has a 25.85 P/E ratio. The Company’s business operates in the extended stay lodging industry.

Extended Stay America Inc (NYSE:STAY) Ratings Coverage

Out of 7 analysts covering Extended Stay America (NYSE:STAY), 2 rate it a “Buy”, 1 “Sell”, while 4 “Hold”. This means 29% are positive. $26 is the highest target while $14 is the lowest. The $18.50 average target is 20.05% above today’s ($15.41) stock price. Extended Stay America has been the topic of 11 analyst reports since August 3, 2015 according to StockzIntelligence Inc. The firm earned “Outperform” rating on Monday, August 3 by Robert W. Baird. Citigroup maintained the shares of STAY in a report on Wednesday, August 17 with “Neutral” rating. The stock has “Underperform” rating given by Bank of America on Tuesday, July 21. The rating was maintained by Deutsche Bank with “Buy” on Friday, July 31. The company was downgraded on Thursday, January 14 by M Partners. The stock of Extended Stay America Inc (NYSE:STAY) has “Neutral” rating given on Monday, September 26 by Goldman Sachs. The stock of Extended Stay America Inc (NYSE:STAY) has “Buy” rating given on Wednesday, October 28 by Deutsche Bank.

More recent Extended Stay America Inc (NYSE:STAY) news were published by: Businesswire.com which released: “Extended Stay America Announces Pricing of Secondary Offering and Repurchase …” on November 15, 2016. Also Prnewswire.com published the news titled: “Extended Stay America Announces Resignation Of Chief Marketing Officer” on September 08, 2016. Businesswire.com‘s news article titled: “Extended Stay America, Inc. Announces Launch of New Credit Facilities” with publication date: August 05, 2016 was also an interesting one.

According to Zacks Investment Research, “Extended Stay America, Inc. owns and operates hotels under the core brand, Extended Stay America(R). It is the owner/operator of company-branded hotels in North America. The Company offers guest rooms, dining services, on-site laundry, local phone calls, personalized voicemail, pools, fitness centers, and pet friendly accommodations. Extended Stay America, Inc. is headquartered in Charlotte, North Carolina.”

STAY Company Profile

Extended Stay America, Inc. (Extended Stay), incorporated on July 8, 2013, is an integrated owner/operator of company-branded hotels in North America. The Firm operates in hotel activities segment. The Company’s business operates in the extended stay lodging industry. The Firm owns and operates approximately 630 hotels comprising over 69,400 rooms located in approximately 40 states across the United States and in Canada. It owns and operates its hotels under its core brand, Extended Stay America, which serves the mid-price extended stay segment. In addition, the Company owns and operates over three Extended Stay Canada hotels. The Firm operates its hotels owned by ESH Hospitality, Inc. (ESH REIT). The hotels are operated by the Operating Lessees, subsidiaries of the Company and are managed by ESA Management LLC (ESA Management), a subsidiary of the Company. ESH Strategies, a subsidiary of the Company, owns the brands related to its business.

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