Extended Stay plans to issue a $2.5 billion single-borrower CMBS deal that is being managed by JP Morgan, Deutsche Bank and Citigroup.
The deal, Extended Stay America Trust 2013-ESH Commercial Mortgage Pass-Through Certificates, Series 2013-ESH, represent the beneficial interest in the mortgage loan securing 680 owned and ground-leased hotels; all furniture, fixtures, and equipment (FF&E); operating assets; and agreements securing all intellectual property.
The securitization deal
Fitch Ratings, Standard & Poor's and Moody's Investors Service assigned preliminary ratings to the long anticipated Extended Stay single-borrower CMBS deal.
The loan is structured with three components, including the $350 million, two-year (with three, one-year extension options) floating-rate component A, the $350 million five-year fixed-rate component B, and the $1.82 billion seven-year fixed-rate component C. The total debt package includes mezzanine financing in the amount of $1.08 billion that is not included in the trust.