Sunstone Hotel Investors Announces Redemption of 8.0% Series A Preferred Stock
ALISO VIEJO, Calif., Jan. 28, 2013 /PRNewswire/ -- Sunstone Hotel Investors, Inc. (the "Company") (NYSE: SHO) announced today that it intends to redeem all of its issued and outstanding 8.0% Series A Cumulative Redeemable Preferred Stock (the "Series A Shares") (CUSIP: 867892200). All of the 7,050,000 issued and outstanding Series A Shares will be redeemed. Series A Shares held through the Depository Trust Company will be redeemed in accordance with the applicable procedures of the Depository Trust Company.
The redemption date will be March 1, 2013. The Series A Shares will be redeemed at a redemption price of $25.00 per share, plus accrued and unpaid dividends to and including the redemption date in an amount equal to $0.33 per share, for a total payment of $25.33 per share. The redemption price for the Series A Shares will be payable in cash, without interest on the redemption date. After the redemption date, Series A Shares shall no longer be deemed outstanding and all rights of the holders of such shares will terminate, except the right to receive the redemption price plus any accrued and unpaid dividends payable on the redemption date, without interest. Furthermore, because the redemption of the Series A Shares is a redemption in full, trading of the Series A Shares on the New York Stock Exchange ("NYSE") will cease after the redemption date. The Series A Shares trade on the NYSE under the symbol "SHOPRA".
The notice of redemption and related materials for each of the Series A Shares are being mailed to holders of record as of January 30, 2013. As specified in each notice of redemption, payment of the applicable redemption price will be made only upon presentation and surrender of the certificates representing the Series A Shares to the redemption agent, American Stock Transfer & Trust Company, LLC. Questions regarding the redemption of the Series A Shares, or the procedures therefore, may be directed to American Stock Transfer & Trust Company, LLC at (877) 248-6417.
The aggregate amount to be paid to effect the redemptions of the Series A Shares will be funded by net proceeds from the Company's recent offering of common stock, par value $0.01 per share.
About Sunstone Hotel Investors:
Sunstone Hotel Investors, Inc. ("Sunstone") is a lodging real estate investment trust ("REIT") that has interests in 26 hotels comprised of 11,632 rooms. Sunstone's hotels are primarily in the upper upscale segment and are generally operated under nationally recognized brands, such as Marriott, Hilton, Hyatt, Fairmont, and Sheraton.
Sunstone's mission is to create meaningful value for our stockholders by becoming the premier hotel investment company. Our values include transparency, trust, ethical conduct, communication and discipline. We seek to employ a balanced, cycle-appropriate corporate strategy that encompasses the following:
- Proactive portfolio management;
- Intensive asset management;
- Disciplined external growth; and
- Measured balance sheet improvement.
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: volatility in the debt or equity markets affecting our ability to acquire or sell hotel assets; international, national, and local economic and business conditions, including the likelihood of a prolonged U.S. recession or global economic slowdown; the ability to maintain sufficient liquidity and our access to capital markets; potential terrorist attacks, which would affect occupancy rates at our hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of our indebtedness and our ability to meet covenants in our debt and equity agreements; relationships with property managers and franchisors; the ground, air or building leases for 10 of our 26 hotels held for investment as of January 28, 2013; our ability to maintain our properties in a first-class manner, including meeting capital expenditure requirements; our ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations, which influence or determine wages, prices, construction procedures and costs; our ability to identify, successfully compete for and complete acquisitions; the performance of hotels after they are acquired; necessary capital expenditures and our ability to fund them and complete them with minimum disruption; the impact of renovations on hotel operations and delays in renovations or other developments; our ability to continue to satisfy complex rules in order for us to qualify as a REIT for federal income tax purposes; our hotels and related goodwill may become impaired, or our hotels and related goodwill which have previously become impaired may become further impaired, in the future, which may adversely affect our financial condition and results of operations; potential adverse tax consequences in the event that our operating leases with our taxable REIT subsidiaries are held not to have been made on an arm's-length basis; and other risks and uncertainties associated with our business described in the Company's filings with the Securities and Exchange Commission. 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 January 28, 2013, 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:
Senior Vice President – Corporate Finance
Sunstone Hotel Investors, Inc.
SOURCE Sunstone Hotel Investors, Inc.