The proposal includes: $450 million equity investment and a $255 million cash option for creditors that want cash instead of equity. The group also agreed to backstop a $200 million equity rights offering. Barry Sternlicht's Starwood is reportedly providing half of the equity, while TPG and Five Mile will provide the remainder.
The total value of the proposal after it closes is said to be $3.9 billion, according to Extended Stay. And in light of this deal, the board of directors for the hotel chain have terminated the bid from Centerbridge and Paulson & Co.
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