SUNSTONE HOTEL INVESTORS COMPLETES $850 MILLION AMENDED AND RESTATED CREDIT AGREEMENT

Rhea-AI Summary

Sunstone Hotel Investors (NYSE: SHO) announced an Amended Credit Agreement enhancing its financial flexibility. Key highlights include:

• Expansion of unsecured borrowing capacity
• Increase of term loan facilities from $108 million to $350 million
• $500 million revolving credit facility remains fully undrawn
• Term loans mature in July 2027 and January 2028

This amendment supports a stronger balance sheet, with proceeds used to repay $230 million on the revolving credit facility, reflecting confidence from banking partners.

Positive

• Expanded unsecured borrowing capacity increases financial flexibility.
• Term loan facilities increased from $108 million to $350 million.
• Fully undrawn $500 million revolving credit facility.
• Improved balance sheet management with repayment of $230 million debt.

Negative

• None.

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 Estate® 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 Estate®. For further information, please visit Sunstone's website at www.sunstonehotels.com.

For Additional Information:
Aaron Reyes
Sunstone Hotel Investors, Inc.
(949) 382-3018

 

View original content:https://www.prnewswire.com/news-releases/sunstone-hotel-investors-completes-850-million-amended-and-restated-credit-agreement-301593867.html

SOURCE Sunstone Hotel Investors, Inc.

FAQ

What is Sunstone Hotel Investors' recent credit agreement update?

Sunstone Hotel Investors announced an Amended Credit Agreement that expands its unsecured borrowing capacity and increases term loan facilities from $108 million to $350 million.

What are the terms of the new credit facilities for SHO?

The new credit facilities include a fully undrawn $500 million revolving credit facility and term loans maturing in July 2027 and January 2028.

How much debt has Sunstone repaid with the new loan agreement?

Sunstone used proceeds from the new term loans to fully repay $230 million on its revolving credit facility.

Who are the lenders for Sunstone Hotel Investors' credit facilities?

The credit facilities are led by Wells Fargo Securities, BofA Securities, JPMorgan Chase, PNC Capital Markets, and others.