Sunstone Hotel Investors, Inc., the owner of Long-Term Relevant Real Estate® in the hospitality sector, announced that it has completed amendments to the agreements governing its in-place unsecured debt, including the Company’s $500 million revolving credit facility, $185 million of funded term loan facilities and $205 million of outstanding private placement senior notes. Pursuant to the terms of the amendments, certain restrictions limiting the aggregate value of unencumbered hotel acquisitions that the Company can complete during the covenant waiver period have been removed. Following the amendments, the Company is no longer subject to the restrictive covenant limiting non-equity funded acquisitions to a maximum of $250 million. Additionally, provided that an event of default has not occurred, the agreement governing Sunstone’s revolving credit facility and funded term loans no longer requires a mandatory prepayment from net proceeds received from asset sales or equity issuances. The amended unsecured debt agreements continue to provide for a waiver of the financial covenants through March 31, 2022, and require compliance with various other restrictions during the covenant waiver period, including the maintenance of a minimum liquidity threshold.
John Arabia, President and CEO, stated, “We are pleased to announce another favorable amendment of our unsecured debt agreements and appreciate the continued support from our long-standing lender and noteholder relationships. The amended agreements provide the Company with incremental capacity and enhanced flexibility to pursue additional Long-Term Relevant Real Estate acquisitions. In addition, this most recent amendment positions Sunstone to better take advantage of acquisition opportunities that may arise as the industry recovers, without having to solely rely on the need to sell existing assets or raise additional equity capital.”
About Sunstone Hotel Investors, Inc.
Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (“REIT”). Sunstone’s business is to acquire, own, asset manage and renovate or reposition hotels considered to be Long-Term Relevant Real Estate®. For further information, please visit Sunstone’s website at www.sunstonehotels.com.
For Additional Information:
Bryan Giglia
Sunstone Hotel Investors, Inc.
(949) 382-3036
Aaron Reyes
Sunstone Hotel Investors, Inc.
(949) 382-3018