Extends Maturities to 2027 and 2028, Increases
Term Loan Borrowing Capacity, and Results in a Fully Undrawn
Revolving Credit Facility
IRVINE,
Calif., July 27, 2022 /PRNewswire/ -- Sunstone
Hotel Investors, Inc. (the "Company" or "Sunstone") (NYSE: SHO),
the owner of Long-Term Relevant Real EstateĀ® in the lodging
industry, announced today that it has entered into a Second Amended
and Restated Credit Agreement (the "Amended Credit Agreement")
which expands the Company's unsecured borrowing capacity and
extends the maturity of the in-place loans. The Amended Credit
Agreement continues to provide for a $500
million revolving credit facility and increases the
aggregate amount of the Company's two term loan facilities from
$108 million to $350 million. The facilities will bear interest
pursuant to a leverage-based pricing grid ranging from 1.35% to
2.25% over the applicable adjusted term SOFR. The $500 million revolving credit facility has two
six-month extension options, which would result in an extended
maturity of July 2027. The two term
loan facilities each have a balance of $175
million and mature in July
2027 and January 2028. The
Company utilized proceeds received from the incremental borrowing
on the term loans to fully repay the $230
million that was outstanding on its revolving credit
facility.
"We are pleased to announce this amendment to our credit
agreement that further enhances our balance sheet flexibility,
extends our maturities, and more prudently utilizes our debt
capacity," commented Aaron Reyes,
Chief Financial Officer. "We appreciate the support and partnership
from our existing and new banking relationships, as their lending
commitments to our expanded credit facilities demonstrate their
confidence in our balance sheet and corporate strategy."
The Company's $850 million
unsecured credit facilities are led jointly by Wells Fargo
Securities, LLC, BofA Securities, Inc., JPMorgan Chase Bank, N.A.,
PNC Capital Markets LLC, U.S. Bank National Association, Truist
Securities, Inc., and The Huntington National Bank. Wells Fargo
Bank, National Association serves as the Administrative Agent. Bank
of America, N.A. and JPMorgan Chase Bank, N.A. serve as the
Syndication Agents, PNC Bank, National Association, U.S. Bank
National Association, Truist Bank, and The Huntington National Bank
are the Documentation Agents, and J.P. Morgan Securities LLC serves
as the Sustainability Agent.
About Sunstone Hotel Investors,
Inc.
Sunstone Hotel Investors, Inc. is a lodging real estate
investment trust ("REIT"). Sunstone's strategy is to create
long-term stakeholder value through the acquisition, active
ownership, and disposition of hotels considered to be Long-Term
Relevant Real EstateĀ®. For further information, please visit
Sunstone's website at www.sunstonehotels.com.
For Additional Information:
Aaron Reyes
Sunstone Hotel Investors, Inc.
(949) 382-3018
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SOURCE Sunstone Hotel Investors, Inc.