Sunstone Hotel Investors, Inc. Prices Public Offering of 20 Million Common Shares
17 October 2009 - 12:23AM
PR Newswire (US)
SAN CLEMENTE, Calif., Oct. 16 /PRNewswire-FirstCall/ -- Sunstone
Hotel Investors, Inc. (NYSE:SHO) (the "Company") announced the
pricing of its public offering of 20,000,000 shares of its common
stock at a price per share of $7.20. The underwriters have been
granted a 30-day option to purchase up to an additional 3,000,000
shares of common stock to cover over-allotments, if any. The joint
bookrunners for this offering are BofA Merrill Lynch and Wells
Fargo Securities. Citi, Deutsche Bank Securities, J.P. Morgan and
UBS Investment Bank are acting as senior co-managers and R.W.
Baird, Calyon Securities (USA), FBR Capital Markets & Co.,
KeyBanc Capital Markets, Raymond James and Stifel Nicolaus are
acting as co-managers. The Company expects to contribute the net
proceeds from this offering to Sunstone Hotel Partnership, LLC, its
wholly owned subsidiary (the "Operating Partnership"), in exchange
for additional membership interests in the Operating Partnership.
The Operating Partnership will subsequently use those net proceeds
from this offering for working capital and other general corporate
purposes, which could include one or more hotel acquisitions. The
shares of common stock are being offered pursuant to an effective
registration statement filed with the Securities and Exchange
Commission and may be made only by means of a prospectus. A copy of
the prospectus relating to the offering will be filed with the
Securities and Exchange Commission and, when available, can be
obtained from the offices of BofA Merrill Lynch at Attn: Prospectus
Department, 4 World Financial Center, New York, NY 10080 or Wells
Fargo Securities at Attn: Equity Syndicate Department, 375 Park
Avenue, New York, New York 10152, telephone: (800) 326-5897, email:
. This communication shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or jurisdiction in which the offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of that state or
jurisdiction. About Sunstone Hotel Investors, Inc. Sunstone Hotel
Investors, Inc. is a lodging real estate investment trust ("REIT")
that, as of the date hereof, has interests in 40 hotels comprised
of 14,006 rooms primarily in the upper-upscale segment operated
under nationally recognized brands, such as Marriott, Hyatt,
Fairmont, Hilton, and Starwood. This press release contains
forward-looking statements within the meaning of federal securities
laws and regulations. These forward-looking statements are
identified by their use of terms and phrases such as "anticipate,"
"believe," "continue," "could," "estimate," "expect," "intend,"
"may," "plan," "predict," "project," "should," "will" and other
similar terms and phrases, including references to assumptions and
forecasts of future results. Forward-looking statements are not
guarantees of future performance and involve known and unknown
risks, uncertainties and other factors that may cause the actual
results to differ materially from those anticipated at the time the
forward-looking statements are made. These risks include, but are
not limited to: general economic and business conditions affecting
the lodging and travel industry, both nationally and locally,
including a prolonged U.S. recession; our need to operate as a REIT
and comply with other applicable laws and regulations; rising
operating expenses; relationships with and requirements of
franchisors and hotel brands; relationships with and the
performance of the managers of our hotels; the ground or air leases
for eight of our hotels; performance of hotels after they are
acquired; competition for the acquisition of hotels; competition in
the operation of our hotels; our ability to complete acquisitions
and dispositions; the need for renovations and other capital
expenditures for our hotels; the impact of renovations on hotel
operations and delays in renovations or other developments; changes
in business strategy or acquisition or disposition plans; our level
of outstanding debt, including secured, unsecured, fixed and
variable rate debt; financial and other covenants in our debt and
preferred stock; volatility in the credit or equity markets and the
effect on lodging demand or our ability to obtain financing on
favorable terms or at all; and other events beyond our control.
Although the Company believes the expectations reflected in such
forward-looking statements are based upon reasonable assumptions,
it can give no assurance that the expectations will be attained or
that any deviation will not be material. All forward-looking
information in this release is as of the date hereof, and the
Company undertakes no obligation to update any forward-looking
statement to conform the statement to actual results or changes in
the Company's expectations. For Additional Information: Bryan
Giglia Vice President - Corporate Finance Sunstone Hotel Investors,
Inc. (949) 369-4236 DATASOURCE: Sunstone Hotel Investors, Inc.
CONTACT: Bryan Giglia, Vice President - Corporate Finance of
Sunstone Hotel Investors, Inc., +1-949-369-4236
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