Sunstone Hotel Investors Floats New Stock Issue
Sunstone Hotel Partners is checking in to the markets for a fresh stock offering. The specialty REIT is floating 20 million shares of its common stock in an underwritten public issue. It expects gross proceeds of roughly $273 million, putting the per-share price at $13.65. Additionally, the offering's underwriter has been granted a 30-day purchase option for up to an additional 3 million shares.
Sunstone expects to transfer the proceeds to its subsidiary, Sunstone Hotel Partnership, "in exchange for additional membership interests in the Operating Partnership." In turn, the partnership will utilize those monies to finance potential acquisitions and for "general corporate purposes."
Bank of America's Merrill Lynch is the sole book-running manager of the offering, which is expected to close on or about this Friday.
Currently, Sunstone has nearly 163 million shares outstanding, and its stock most recently closed at $13.56 per share.
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