Sunstone Hotel Investors, Inc. Successfully Amends Unsecured Debt Agreements, Providing Enhanced Acquisition Capacity
July 08, 2021 at 04:30 pm EDT
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Sunstone Hotel Investors, Inc. announced that it has completed amendments to the agreements governing its in-place unsecured debt, including the Company's $500 million revolving credit facility, $185 million of funded term loan facilities and $205 million of outstanding private placement senior notes. Pursuant to the terms of the amendments, certain restrictions limiting the aggregate value of unencumbered hotel acquisitions that the Company can complete during the covenant waiver period have been removed. Following the amendments, the Company is no longer subject to the restrictive covenant limiting non-equity funded acquisitions to a maximum of $250 million. Additionally, provided that an event of default has not occurred, the agreement governing Sunstone's revolving credit facility and funded term loans no longer requires a mandatory prepayment from net proceeds received from asset sales or equity issuances. The amended unsecured debt agreements continue to provide for a waiver of the financial covenants through March 31, 2022, and require compliance with various other restrictions during the covenant waiver period, including the maintenance of a minimum liquidity threshold.
Sunstone Hotel Investors, Inc. is a real estate investment trust. The Company owns approximately 14 hotels, comprised of 6,675 rooms, located in six states and in Washington, DC. The Companyâs portfolio consists of luxury hotels located in convention, resort destinations and urban markets. It is the owner of Long-Term Relevant Real Estate (LTRR) in the lodging industry, specifically hotels in urban and resort destination locations. The Company's hotels are operated by third-party managers under long-term management agreements with TRS Lessee or its subsidiaries. It is operated by third-party managers under long-term management agreements with the TRS Lessee or its subsidiaries. Its third-party managers include subsidiaries of Marriott International, Inc.; managers of six of the Companyâs hotels; Hyatt Hotels Corporation, manager of two of its hotels; and Four Seasons Hotels Limited, Highgate Hotels L.P. and an affiliate, Hilton Worldwide, and Interstate Hotels & Resorts, Inc.
SUNSTONE HOTEL INVESTORS, INC. 
