(Source: PRNewswire)
SAN CLEMENTE, Calif., May 22 /PRNewswire-FirstCall/ -- Sunstone Hotel Investors, Inc. (NYSE: SHO) (the "Company") announced that the underwriters in its public offering of 18,000,000 shares of its common stock have elected to exercise their option to purchase an additional 2,700,000 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 $98.8 million. The closing for the additional purchase of 2,700,000 shares is expected to take place concurrently with the closing for the initial purchase of 18,000,000 shares on May 28, 2009, subject to customary closing conditions.
The joint book runners for this offering are Citi, J.P. Morgan and Merrill Lynch & Co. Deutsche Bank Securities is acting as senior co-manager and Calyon Securities (USA) Inc. and FBR Capital Markets & Co. 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 subsequently use those net proceeds from this offering for working capital and other general corporate purposes, including potentially the repayment of any amounts drawn on the Company's revolving credit facility, and/or the repurchase of the $123.5 million principal amount of 4.60% Exchangeable Senior Notes due 2027 of the Operating Partnership tendered pursuant to the Company's tender offer that expired on May 19, 2009, which repurchase will be consummated using approximately $86.5 million in cash.
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 was filed with the Securities and Exchange Commission on May 22, 2009 and can be obtained from the offices of Citi at Attn: Prospectus Department, Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220, telephone: (800) 831-9146; from the offices of J.P. Morgan Securities Inc. at Prospectus Library, 4 Chase Metrotech Center, CS Level, Brooklyn, NY 11245, telephone: (718) 242-8002; and from the offices of Merrill Lynch, Pierce, Fenner & Smith Incorporated at Attn: Prospectus Department, 4 World Financial Center, New York, NY 10080.
