Sunstone Hotel Investors’ $155 million of 6.95% cumulative redeemable preferreds admitted to NYSE

By Stephanie N. Rotondo

Seattle, March 14 – Sunstone Hotel Investors Inc.’s $115 million of 6.95% series E cumulative redeemable perpetual preferred stock – a deal priced March 4 – began trading on the New York Stock Exchange on Monday, according to a market source.

The ticker symbol is “SHOPE.” The deal was initially talked around 7%.

Wells Fargo Securities LLC and BofA Merrill Lynch were the joint bookrunners. Joint lead managers were Jefferies LLC, J.P. Morgan Securities LLC and U.S. Bancorp Investments Inc.

Co-managers included BB&T Capital Markets, BBVA Securities Inc., Citigroup Global Markets Inc. and Scotia Capital (USA) Inc.

Dividends will be payable on the 15th day of January, April, July and October, beginning July 15. The preferreds become redeemable in 2021 or in whole upon a change of control at par plus accrued dividends.

Proceeds will be contributed to the operating partnership in exchange for series E preferred units. The operating partnership will use the funds to redeem the 8% series D cumulative redeemable preferreds, to repay debt and for general corporate purposes.

Sunstone is an Aliso Viejo, Calif.-based real estate investment trust.

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