Debt (Tables)

6 Months Ended

Jun. 30, 2017

Summary - The Company’s outstanding debt, net of unamortized debt discount, and unamortized deferred financing costs as of June 30, 2017 and December 31, 2016, consists of the following (dollars in thousands):



	Stated Amount(1)			Carrying Amount					Unamortized Deferred Financing Costs								Interest Rate
Loan	Stated Amount(1)			June 30, 2017			December 31, 2016		June 30, 2017			December 31, 2016			Stated Interest Rate		June 30, 2017			December 31, 2016		Maturity Date
Term loan facilities
ESH REIT 2016 Term Facility	$	1,300,000	⁽²⁾	$	1,284,540	⁽³⁾	$	1,290,560	$	14,618		$	15,804		LIBOR⁽⁴⁾ + 2.50%⁽⁵⁾		3.71	%	⁽⁵⁾	3.75	%	8/30/2023	⁽⁷⁾
Senior notes
ESH REIT 2025 Notes	1,300,000			1,289,699		⁽⁶⁾	1,289,041		22,111			23,523			5.25	%	5.25	%		5.25	%	5/1/2025
Revolving credit facilities ⁽⁸⁾
ESH REIT 2016 Revolving Credit Facility	350,000			—			45,000		2,295		⁽⁸⁾	2,570		⁽⁸⁾	LIBOR + 2.75%		N/A			3.33	%	8/30/2021
Corporation 2016 Revolving Credit Facility	50,000			—			—		456		⁽⁸⁾	511		⁽⁸⁾	LIBOR + 3.00%		N/A			N/A		8/30/2021
Unsecured Intercompany Facility
Unsecured Intercompany Facility	75,000		⁽⁹⁾	—			—		—			—			5.00	%	5.00	%		5.00	%	8/30/2023
Total				$	2,574,239		$	2,624,601	$	39,480		$	42,408

_________________________________


(1)	Amortization is interest only, except for the 2016 Term Facility (as defined below) which amortizes in equal quarterly installments of $3.24 million. See (7) below.


(2)	ESH REIT is able to increase its borrowings under the 2016 ESH REIT Credit Facilities (as defined below) by an amount of up to $600.0 million, plus additional amounts, in each case subject to certain conditions.


(3)	The 2016 Term Facility is presented net of an unamortized debt discount of approximately $5.7 million and $6.2 million as of June 30, 2017 and December 31, 2016, respectively.


(4)	As of December 31, 2016, the stated interest rate of the 2016 Term Facility was LIBOR + 3.00% and included a LIBOR floor of 0.75%.


(5)	$450.0 million of the 2016 Term Facility is subject to an interest rate swap at a fixed rate of 1.175% (see Note 8).


(6)	The 2025 Notes (as defined below) are presented net of an unamortized debt discount of approximately $10.3 million and $11.0 million as of June 30, 2017 and December 31, 2016, respectively.

(7)

In addition to scheduled amortization noted in (1) above, subject to certain exceptions, annual mandatory prepayments of up to 50% of Excess Cash Flow, as defined, may be required under the 2016 Term Facility commencing with the year ending December 31, 2017. Annual mandatory prepayments for the year ending December 31, 2017 and each year thereafter are due during the first quarter of the following year.


(8)	Unamortized deferred financing costs related to the revolving credit facilities are included in other assets in the accompanying unaudited condensed consolidated balance sheets.

(9)

As of June 30, 2017, the outstanding balance owed from ESH REIT to the Corporation under the Unsecured Intercompany Facility was $50.0 million. ESH REIT is able to increase its borrowings under the Unsecured Intercompany Facility to an amount of up to $300.0 million, plus additional amounts, in each case subject to certain conditions. The outstanding debt balance and interest expense owed from ESH REIT to the Corporation related to the Unsecured Intercompany Facility eliminate in consolidation.

Future Maturities of Debt

Future Maturities of Debt—The future maturities of debt as of June 30, 2017, are as follows (in thousands):



Years Ending December 31,
Remainder of 2017	$	6,484
2018	12,968
2019	12,968
2020	12,968
2021	12,968
Thereafter	2,531,910		⁽¹⁾
Total	$	2,590,266

______________________


(1)	Under the 2016 Term Facility, annual mandatory prepayments of up to 50% of Excess Cash Flow, as defined, may be required commencing with the year ending December 31, 2017. Annual mandatory prepayments for the year ending December 31, 2017 and each year thereafter are due during the first quarter of the following year.

ESH REIT

Entity Information [Line Items]

Company's Outstanding Debt

Summary—ESH REIT’s outstanding debt, net of unamortized debt discount, and unamortized deferred financing costs as of June 30, 2017 and December 31, 2016, consists of the following (dollars in thousands):



	Stated Amount⁽¹⁾			Carrying Amount					Unamortized Deferred Financing Costs									Interest Rate
Loan	Stated Amount⁽¹⁾			June 30, 2017			December 31, 2016		June 30, 2017			December 31, 2016			Stated Interest Rate			June 30, 2017			December 31, 2016		Maturity Date
Term loan facility
2016 Term Facility	$	1,300,000	⁽²⁾	$	1,284,540	⁽³⁾	$	1,290,560	$	14,618		$	15,804		LIBOR⁽⁴⁾ + 2.50%		⁽⁵⁾	3.71	%	⁽⁵⁾	3.75	%	08/30/2023	⁽⁷⁾
Senior notes
2025 Notes	1,300,000			1,289,699		⁽⁶⁾	1,289,041		22,111			23,523			5.25	%		5.25	%		5.25	%	05/01/2025
Revolving credit facility
2016 Revolving Credit Facility	350,000			—			45,000		2,295		⁽⁸⁾	2,570		⁽⁸⁾	LIBOR + 2.75%			N/A			3.33	%	08/30/2021
Unsecured Intercompany Facility
Unsecured Intercompany Facility	75,000		⁽⁹⁾	50,000			50,000		—			—			5.00	%		5.00	%		5.00	%	08/30/2023
Total				$	2,624,239		$	2,674,601	$	39,024		$	41,897

_________________________________


(1)	Amortization is interest only, except for the 2016 Term Facility (as defined below) which amortizes in equal quarterly installments of $3.24 million. See (7) below.


(2)	ESH REIT is able to increase its borrowings under the 2016 ESH REIT Credit Facilities (as defined below) by an amount of up to $600.0 million, plus additional amounts, in each case subject to certain conditions.


(3)	The 2016 Term Facility is presented net of an unamortized debt discount of approximately $5.7 million and $6.2 million as of June 30, 2017 and December 31, 2016, respectively.


(4)	As of December 31, 2016, the stated interest rate of the 2016 Term Facility was LIBOR + 3.00% and included a LIBOR floor of 0.75%.


(5)	$450.0 million of the 2016 Term Facility is subject to an interest rate swap at a fixed rate of 1.175% (see Note 7).


(6)	The 2025 Notes (as defined below) are presented net of an unamortized debt discount of approximately $10.3 million and $11.0 million as of June 30, 2017 and December 31, 2016, respectively.

(7)


(8)	Unamortized deferred financing costs related to the revolving credit facility are included in other assets in the accompanying unaudited condensed consolidated balance sheets.


(9)	As of June 30, 2017, the outstanding balance owed from ESH REIT to the Corporation under the Unsecured Intercompany Facility was $50.0 million. ESH REIT is able to increase its borrowings under the Unsecured Intercompany Facility to an amount of up to $300.0 million, plus additional amounts, in each case subject to certain conditions.

Future Maturities of Debt

Future Maturities of Debt—The future maturities of debt as of June 30, 2017, are as follows (in thousands):



Years Ending December 31,
Remainder of 2017	$	6,484
2018	12,968
2019	12,968
2020	12,968
2021	12,968
Thereafter	2,581,910		⁽¹⁾
Total	$	2,640,266

______________________


(1)	Under the 2016 Term Facility, annual mandatory prepayments of up to 50% of Excess Cash Flow, as defined, may be required commencing with the year ending December 31, 2017. Annual mandatory prepayments for the year ending December 31, 2017 and each year thereafter are due during the first quarter of the following year.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Publisher FASB
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

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-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details