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Sunstone Hotel Investors Announces Redemption of 8.0% Series A Preferred Stock



Sunstone Hotel Investors Announces Redemption of 8.0% Series A Preferred Stock

PR Newswire

ALISO VIEJO, Calif., Jan. 28, 2013

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:

  o Proactive portfolio management;
  o Intensive asset management;
  o Disciplined external growth; and
  o 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:
Bryan Giglia
Senior Vice President – Corporate Finance
Sunstone Hotel Investors, Inc.
(949) 382-3036

SOURCE Sunstone Hotel Investors, Inc.

Website: http://www.sunstonehotels.com
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