Sunstone Hotel Investors accepts more than 7.37 million shares in Dutch auction tender offer

By Lisa Kerner

Charlotte, N.C., July 8 - Sunstone Hotel Investors, Inc. accepted for purchase 7,374,179 shares, or approximately 13%, of its outstanding common stock at a price of $17.50 per share for a total cost of about $129 million in its Dutch auction tender offer, which ended June 27.

American Stock Transfer & Trust Co.'s final tabulation indicated 7,707,362 shares were validly tendered and not validly withdrawn at or below a price of $17.50 per share.

The resulting proration factor for the oversubscribed offer is 95.96%, a Sunstone news release stated.

Sunstone said it will have 51.3 million shares of common stock outstanding after purchasing the tendered shares.

"We are pleased with the successful completion of the tender offer and our ability to repurchase the maximum number of shares at a meaningful discount to our net asset value," chief executive officer and executive chairman of the board Robert A. Alter noted in the release.

On June 16, Sunstone amended the price range of its previously announced modified Dutch auction tender offer to purchase up to 6.2 million shares, or about 11%, of its common stock to a price not less than $16.75 and not greater than $19.25 per share.

The prior offer for the same amount of shares was not less than $18.65 and not greater than $21.15 per share, it was previously reported.

Information agent for the offer was D.F. King & Co., Inc. (800 735-3107). J.P. Morgan Securities Inc. was the dealer manager.

Sunstone Hotel Investors is a lodging real estate investment trust based in San Clemente, Calif.

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