Sunstone Hotel enters into $400 million four-year unsecured revolver

By Tali Rackner

Norfolk, Va., April 2 – Sunstone Hotel Investors, Inc. entered into a $400 million four-year unsecured revolving credit agreement via Wells Fargo Bank, NA on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement matures on April 2, 2019 and may be extended two times, by six months each, to April 2, 2020.

Sunstone may increase the facility by up to an additional $400 million by raising the amount of the revolving portion or by adding term loans.

Interest is Libor plus 155 basis points to 230 bps, based on leverage.

There is a 30 bps commitment fee of the unused portion of the credit agreement if the average usage is greater than 50% and 20 bps if the average usage is less than or equal to 50%.

Financial covenants require the company to maintain a maximum leverage ratio of 6.5 times and a minimum fixed-charge coverage ratio of 1.5 times.

Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Inc. and J.P. Morgan Securities, LLC are joint lead arrangers and bookrunners; Bank of America NA and JPMorgan Chase Bank NA are syndication agents; and Citibank, NA, PNC Bank, NA and U.S. Bank NA are co-documentation agents.

Sunstone Hotel Investors is a lodging real estate investment trust based in Aliso Viejo, Calif.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.