ALISO VIEJO, Calif., March 4, 2016 /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 D Cumulative Redeemable Preferred Stock (the "Series D Shares"). All of the 4,600,000 issued and outstanding Series D Shares will be redeemed. Series D Shares held through the Depository Trust Company will be redeemed in accordance with the applicable procedures of the Depository Trust Company.
The redemption of the Series D Shares will be effected on April 6, 2016 (the "Redemption Date") at a price equal to $25.00 per share, plus an amount equal to all accrued and unpaid dividends thereon from April 1, 2016 to but not including the Redemption Date in an amount equal to $0.027778 per share, for a total payment of $25.027778 per share (the "Redemption Price"). Holders of record of the Preferred Stock as of March 31, 2016 will receive the previously declared dividend of $0.50 per share with respect to the period from January 1, 2016 to and including March 31, 2016, payable on April 15, 2016. The redemption price for the Series D Shares will be payable in cash, without interest on the Redemption Date. After the Redemption Date, Series D 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, without interest. Furthermore, because the redemption of the Series D Shares is a redemption in full, trading of the Series D Shares on the New York Stock Exchange ("NYSE") will cease after the redemption date. The Series D Shares trade on the NYSE under the symbol "SHOPRD".
The notice of redemption and related materials for each of the Series D Shares are being mailed to holders of record as of March 4, 2016. 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 D Shares to the redemption agent, American Stock Transfer & Trust Company, LLC. Questions regarding the redemption of the Series D Shares, or the procedures therefore, may be directed to American Stock Transfer & Trust Company, LLC at (877) 248-6417.
A portion of the aggregate amount to be paid to effect the redemption in full of the Series D Shares is expected to be funded by net proceeds from the Company's previously announced offering of 6.95% Series E Cumulative Redeemable Preferred Stock, par value $0.01 per share, which offering is expected to close on March 11, 2016, subject to customary closing conditions.
About Sunstone Hotel Investors, Inc.
Sunstone Hotel Investors, Inc. is a lodging real estate investment trust ("REIT") that as of March 4, 2016 has interests in 29 hotels comprised of 13,845 rooms. Sunstone's hotels are primarily in the urban, upper upscale segment and are operated under nationally recognized brands, such as Marriott, Hilton, Hyatt, Fairmont and Sheraton. For further information, please visit Sunstone's website at www.sunstonehotels.com.
Sunstone's mission is to create meaningful value for our stockholders by producing superior long-term returns. Our values include transparency, trust, ethical conduct, communication and discipline. As demand for lodging generally fluctuates with the overall economy, we seek to employ a balanced, cycle-appropriate corporate strategy.
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 opinions, 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 U.S. recession or global economic slowdown, as well as any type of flu or disease-related pandemic, affecting the lodging and travel industry; the ability to maintain sufficient liquidity and our access to capital markets; potential terrorist attacks or civil unrest, 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; 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; our ability to continue to satisfy complex rules in order for us to qualify as a REIT for federal income tax purposes; 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 March 4, 2016, 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 Chief Financial Officer Sunstone Hotel Investors, Inc. (949) 382-3036
SOURCE Sunstone Hotel Investors, Inc.