Sunstone Hotel amends debt for enhanced acquisition capacity

By Wendy Van Sickle

Columbus, Ohio, July 8 – Sunstone Hotel Investors, Inc. amended its unsecured debt, including its $500 million revolver, $185 million of funded term loan facilities and $205 million of outstanding private placement senior notes, according to a news release.

Under the amendment, some restrictions limiting the aggregate value of unencumbered hotel acquisitions that the company can complete during the covenant waiver period have been removed. The company is no longer subject to the restrictive covenant limiting non-equity funded acquisitions to a maximum of $250 million.

Additionally, if an event of default has not occurred, the agreement governing Sunstone’s revolver and funded term loans no longer requires a mandatory prepayment from net proceeds 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.

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

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