By Wendy Van Sickle
Columbus, Ohio, July 13 – Sunstone Hotel Investors, Inc. priced $100 million of 5.7% series I cumulative redeemable preferred stock, according to an FWP filing with the Securities and Exchange Commission.
Wells Fargo Securities LLC, J.P. Morgan Securities LLC and Raymond James & Associates, Inc. are the bookrunners.
Dividends will be payable on the 15th day of January, April, July and October, beginning Oct. 15, 2021. The preferreds become redeemable in 2026 or upon a change of control at par plus accrued dividends.
Proceeds will be used to redeem all of operating partnership Sunstone Hotel Partnership, LLC’s 6.45% series F cumulative redeemable preferred stock and for general corporate purposes.
Sunstone is an Aliso Viejo, Calif.-based real estate investment trust.
| Issuer: | Sunstone Hotel Investors, Inc.
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| Securities: | Series I cumulative redeemable preferred stock
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| Amount: | $100 million, or 4 million shares
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| Greenshoe: | None
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| Maturity: | Perpetual
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| Bookrunners: | Wells Fargo Securities LLC, J.P. Morgan Securities LLC and Raymond James & Associates, Inc.
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| Lead managers: | PNC Capital Markets LLC and U.S. Bancorp Investments, Inc.
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| Co-manager: | Robert W. Baird & Co. Inc.
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| Dividend: | 5.7%
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| Price: | Par of $25.00
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| Yield: | 5.7%
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| Call options: | Starting on July 16, 2026 or upon a change of control at par plus accrued dividends
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| Pricing date: | July 13
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| Settlement date: | July 16
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| Expected listing: | NYSE: SHOPRI
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