Sunstone Hotel To Offer 18 Million Common Shares
May 21, 2009 (FinancialWire) — Sunstone Hotel Investors, Inc. (NYSE: SHO) plans to issue 18 million shares of its common stock. Citi, J.P. Morgan and Merrill Lynch & Co. will act as joint book runners.
The underwriters will be granted a 30-day option to purchase up to an additional 2.7 million shares of common stock to cover over-allotments.
Sunstone plans to contribute the net proceeds from the offering to its Sunstone Hotel Partnership subsidiary in exchange for additional membership interests in the operating partnership.
The partnership will subsequently use the net proceeds for working capital and other general corporate purposes, including potentially the repayment of any amounts drawn on the company’s revolving credit facility.
Sunstone Partners may also use around $86.5 million of the net proceeds to repurchase the $123.5 million principal amount of 4.60% exchangeable senior notes due 2027 that the partnership tendered under an offer that expired on May 19.
San Clemente, California-based Sunstone Hotel Investors is a lodging real estate investment trust that has interests in 43 hotels comprised of 14,755 rooms.
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