Sunstone Hotel Investors, Inc. Announces the Exercise of the Underwriters' Overallotment Option
October 16 2009 - 6:23PM
PR Newswire (US)
SAN CLEMENTE, Calif., Oct. 16 /PRNewswire-FirstCall/ -- Sunstone
Hotel Investors, Inc. (NYSE:SHO) (the "Company") announced that the
underwriters in its public offering of 20,000,000 shares of its
common stock have elected to exercise their option to purchase an
additional 3,000,000 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 $158.2 million. The
closing for the additional purchase of 3,000,000 shares is expected
to take place concurrently with the closing for the initial
purchase of 20,000,000 shares on October 21, 2009, subject to
customary closing conditions. The joint bookrunners for this
offering are BofA Merrill Lynch and Wells Fargo Securities. Citi,
Deutsche Bank Securities, J.P. Morgan and UBS Investment Bank are
acting as senior co-managers and R.W. Baird, Calyon Securities
(USA), FBR Capital Markets & Co., KeyBanc Capital Markets,
Raymond James and Stifel Nicolaus 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 use the net proceeds from this offering for
working capital and other general corporate purposes, which could
include one or more hotel acquisitions. 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 will be filed with the Securities and Exchange
Commission and, when available, can be obtained from the offices of
BofA Merrill Lynch at Attn: Prospectus Department, 4 World
Financial Center, New York, NY 10080, or Wells Fargo Securities at
Attn: Equity Syndicate Department, 375 Park Avenue, New York, New
York 10152, telephone: (800) 326-5897, email: . 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 40 hotels comprised of 14,006 rooms primarily in the
upper-upscale segment operated under nationally recognized brands,
such as Marriott, Hyatt, Fairmont, Hilton, and Starwood. 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; 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. Bryan Giglia Vice President - Corporate
Finance Sunstone Hotel Investors, Inc. (949) 369-4236 DATASOURCE:
Sunstone Hotel Investors, Inc. CONTACT: Bryan Giglia, Vice
President - Corporate Finance of Sunstone Hotel Investors, Inc.,
+1-949-369-4236
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