Sunstone buys back $64 million in 4.6% exchangeables

By Devika Patel

Knoxville, Tenn., March 16 - Sunstone Hotel Investors, Inc. announced it has repurchased $64 million of its operating partnership's 4.6% exchangeable senior notes due 2027 through unsolicited open market purchases.

The notes were bought back with available cash at an average price of 47.4, for a gross cash consideration of $30.4 million.

"We repurchased notes at a significant discount to par after considering both our liquidity maximization and our leverage reduction goals," chief financial officer Ken Cruse said in a press release. He added that the repurchase "will meaningfully enhance [the company's] financial flexibility."

Based in San Clemente, Calif., Sunstone is a lodging real estate investment trust that has interests in 44 hotels.

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