SAN CLEMENTE, Calif., May 22 /PRNewswire-FirstCall/ -- Sunstone Hotel Investors, Inc. (the "Company") announced that the underwriters in its public offering of 18,000,000 shares of its common stock have elected to exercise their option to purchase an additional 2,700,000 shares of common stock. After deducting the underwriting discounts and commissions and estimated offering expenses, the Company expects to receive total net proceeds from the sale of its shares of common stock of $98.8 million. The closing for the additional purchase of 2,700,000 shares is expected to take place concurrently with the closing for the initial purchase of 18,000,000 shares on May 28, 2009, subject to customary closing conditions.
The joint book runners for this offering are Citi, J.P. Morgan and Merrill Lynch & Co. Deutsche Bank Securities is acting as senior co-manager and Calyon Securities (USA) Inc. and FBR Capital Markets & Co. 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, including potentially the repayment of any amounts drawn on the Company's revolving credit facility, and/or the repurchase of the $123.5 million principal amount of 4.60% Exchangeable Senior Notes due 2027 of the Operating Partnership tendered pursuant to the Company's tender offer that expired on May 19, 2009, which repurchase will be consummated using approximately $86.5 million in cash.
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 was filed with the Securities and Exchange Commission on May 22, 2009 and can be obtained from the offices of Citi at Attn: Prospectus Department, Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220, telephone: (800) 831-9146; from the offices of J.P. Morgan Securities Inc. at Prospectus Library, 4 Chase Metrotech Center, CS Level, Brooklyn, NY 11245, telephone: (718) 242-8002; and from the offices of Merrill Lynch, Pierce, Fenner & Smith Incorporated at Attn: Prospectus Department, 4 World Financial Center, New York, NY 10080.
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 43 hotels comprised of 14,755 rooms primarily in the upper-upscale segment operated under nationally recognized brands, such as Marriott, Hilton, Hyatt, Fairmont and Starwood. For further information, please visit the Company's website at http://www.sunstonehotels.com/.
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; our ability to successfully complete an amendment to our credit facility; 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
Sunstone Hotel Investors, Inc.
CONTACT: Bryan Giglia, Vice President - Corporate Finance of Sunstone
Hotel Investors, Inc., +1-949-369-4236
Web Site: http://www.sunstonehotels.com/
