Sunstone Hotel Investors Announces Pricing Of Offering Of 18 Mln Shares

(RTTNews) - Sunstone Hotel Investors Inc. (SHO) announced the pricing of its public underwritten offering of 18 million shares of its common stock for expected approximate gross proceeds of $263.70 million before underwriting discounts and commissions and estimated offering expenses payable by the Company.

The underwriter has been granted a 30-day option to purchase up to an additional 2.70 million shares of common stock.

The offering is expected to close on or about June 25, 2014.

J.P. Morgan is serving as the sole book-running manager for the offering and proposes to offer the shares on the NYSE, in the over-the-counter market or through negotiated transactions at market prices or at negotiated prices.

The company expects to contribute the net proceeds from this offering to Sunstone Hotel Partnership, LLC, its wholly owned subsidiary, in exchange for additional membership interests in the Operating Partnership.

The Operating Partnership plans to use those net proceeds from this offering (after deducting the underwriting discount and estimated offering expenses) to (i) finance the acquisition of the 544-room Wailea Beach Marriott Resort & Spa located on 22 fee simple acres in Maui, Hawaii, for a net purchase price of $325.7 million, (ii) for other potential future acquisitions and (iii) for general corporate purposes, including working capital and capital investment in our portfolio.