By Stephanie N. Rotondo
Seattle, March 4 – Sunstone Hotel Investors Inc. sold $115 million of 6.95% series E cumulative redeemable perpetual preferred stock, according to a press release published on Friday.
Price talk was around 7%, a market source reported.
Wells Fargo Securities LLC and BofA Merrill Lynch were the joint bookrunners. Joint lead managers were Jefferies LLC, J.P. Morgan Securities LLC and U.S. Bancorp Investments Inc.
Dividends will be paid on the 15th day of January, April, July and October, beginning July 15. The preferreds become redeemable in 2021 or in whole upon a change of control at par plus accrued dividends.
Proceeds will be contributed to the operating partnership in exchange for series E preferred units. The operating partnership will use the funds to redeem the 8% series D cumulative redeemable preferreds, to repay debt 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 E cumulative redeemable preferred stock
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| Amount: | $115 million, or 4.6 million shares
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| Maturity: | Perpetual
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| Bookrunners: | Wells Fargo Securities LLC, BofA Merrill Lynch
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| Lead managers: | Jefferies LLC, J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc.
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| Co-managers: | BB&T Capital Markets, BBVA Securities Inc., Citigroup Global Markets Inc., Scotia Capital (USA) Inc.
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| Dividend: | 6.95%
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| Price: | Par of $25.00
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| Yield: | 6.95%
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| Talk: | 7% area
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| Call options: | Starting March 11, 2021 or upon a change of control at par plus accrued dividends
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| Pricing date: | March 4
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| Settlement date: | March 11
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| Expected listing: | NYSE: SHOPE
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