By Stephanie N. Rotondo
Seattle, May 10 – Sunstone Hotel Investors Inc. priced $75 million of 6.45% series F cumulative redeemable preferred stock, according to a press release published Tuesday.
Price talk was 6.5% to 6.625%, a market source said.
Wells Fargo Securities LLC is the bookrunner. There was no selling group.
Dividends will be payable on the 15th day of January, April, July and October. The preferreds become redeemable in 2021 or upon a change of control at par plus accrued dividends.
Proceeds will be contributed to the operating partnership in exchange for series F preferred units. The operating partnership will then use the funds, along with cash on hand, to repay in full an outstanding mortgage loan secured by the Renaissance Orlando at SeaWorld and for general corporate purposes.
Sunstone is an Aliso Viejo, Calif.-based real estate investment trust.
| Issuer: | Sunstone Hotel Investors Inc.
|
| Securities: | Series F cumulative redeemable preferred stock
|
| Amount: | $75 million, or 3 million shares
|
| Maturity: | Perpetual
|
| Bookrunner: | Wells Fargo Securities LLC
|
| Dividend: | 6.45%
|
| Price: | Par of $25.00
|
| Yield: | 6.45%
|
| Talk: | 6.5% to 6.625%
|
| Call options: | In 2021 or upon a change of control at par plus accrued dividends
|
| Pricing date: | May 10
|
| Settlement date: | May 17
|
| Expected listing: | NYSE: SHOPF
|
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