Business
SUNSTONE HOTEL INVESTORS COMPLETES $1.35 BILLION AMENDED AND RESTATED CREDIT AGREEMENT
Sunstone Hotel Investors, Inc. (the "Company" or "Sunstone") (NYSE: SHO) announced that it has entered into a Third Amended and Restated Credit Agreement (the "Amended Credit Agreement") with an aggregate borrowing capacity of $1.35 billion to address all near term maturities, extend the duration of the remaining in-place loans, and further strengthen the Company's balance sheet. Inclusive of extension options, loans under the Amended Credit Agreement mature at various points in 2030 and 2031 bu
About this update from Sunstone Hotel Investors, Inc.
[{"type":"text","content":"ALISO VIEJO, Calif., Sept. 25, 2025 /PRNewswire/ -- Sunstone Hotel Investors, Inc. (the "Company" or "Sunstone") (NYSE: SHO) announced that it has entered into a Third Amended and Restated Credit Agreement (the "Amended Credit Agreement") with an aggregate borrowing capacity of $1.35 billion to address all near term maturities, extend the duration of the remaining in-place loans, and further strengthen the Company's balance sheet. Inclusive of extension options, loans under the Amended Credit Agreement mature at various points in 2030 and 2031 but are freely prepayable at any time.","length":622,"tagName":"p"},{"type":"text","content":""We are pleased to announce the recast of our credit facilities and appreciate the continued support from our banking partners. The expanded facilities address all maturities through 2028, extend our average maturity by over three years, and lower our overall cost of borrowing" stated Bryan A. Giglia, Chief Executive Officer. "Additionally, this financing provides improved financial flexibility for the Company to execute its strategy while continuing to pursue all avenues to maximize shareholder value."","length":528,"tagName":"p"},{"type":"text","content":"The Amended Credit Agreement is composed of a $500 million revolving credit facility with an initial maturity in September 2029, a $275 million delayed-draw term loan facility with an initial maturity in January 2029, a $275 million term loan facility with an initial maturity in January 2030 and a $300 million term loan facility due January 2031. At the Company's election, the revolving credit facility can be extended to September 2030 and each of the $275 million term loan facilities can be extended to January 2031. The facilities will bear interest pursuant to a leverage-based pricing grid ranging from 1.35% to 2.25% over the applicable term SOFR. In connection with the new facilities, the Company entered into a series of interest rate swaps to lower its borrowing cost and better manage interest rate risk, resulting in over 75% of its debt and preferred equity now subject to fixed rates.","length":906,"tagName":"p"},{"type":"text","content":"The Company utilized proceeds received from the incremental borrowing on the new term loans to consolidate its prior four term loans into three lo...